to the report, the Fed's board has raised"concerns about banks with business plans focused on a narrow sector of the economy", with a high concentration of activities related to the crypto industry. The report notes:
The document also states that Fed's members must align their risk management systems and controls with the activities described in their business plans. Based on the Fed's purview,"Custodia had not yet developed a sufficient risk-management framework for its proposed cryptoasset-related activities, nor had it addressed the highly correlated risks associated with its undiversified business model.
"Further, if the Board were to approve Custodia’s membership application, it would prohibit Custodia from engaging in a number of the novel and unprecedented activities it proposes to conduct—at least until such time as the activities conducted as principal are permissible for national banks [...]."
In a way I am glad the FRB & the Gov are doing this because it removes the idea that the crypto industry as a whole is the sole reason the financial world is in collapse. You can't blame crypto and bring in your CBDC but they will try.
‼️‼️ FED = DEMOCRATS POLITICAL WEAPON
Banks are scared The Fed is scared SEC are scared Bitcoin is coming for you all....