Legal Expert Sheds Light on Fed's Alleged Anti-Crypto Bias

The Fed's Crypto Conundrum

James “MetaLawMan” Murphy, a leading legal figure in the crypto industry at Ludlow Street Advisors, has flagged a possible covert initiative known as “Operation Chokepoint 2.0” by the U.S. Federal Reserve (Fed) aimed at cryptocurrencies. At the heart of the issue is Custodia Bank's prolonged struggle to obtain a master account—a necessity for crucial banking functions such as wire transfers and ACH payments. Despite a standard processing timeframe of just over a week, the bank's application suffered through a 20-month delay and additional eight months after suing the Fed.

Regulatory Resistance

The inexplicable holdups mirror the SEC's reluctance for rulemaking in the crypto domain, hinting at a systemic governmental blockade against crypto. Murphy identifies a disturbing trend where favorable evaluation results from the Kansas City Fed were overturned by the Fed in D.C., which then led to Custodia's application being denied. This reversal not only casts doubt on the fairness of the Fed's decision but also points to a perceived institutional bias against cryptocurrency-related entities.

Championing Financial Freedom

Caitlyn Long, CEO of Custodia, is lauded by Murphy for her tenacious stand against the Fed's Goliath-like stance, making it a significant case for the whole crypto industry's quest for financial liberty. With legal support from multiple parties, the crypto world watches in anticipation as Custodia's litigation unfolds, potentially paving the way for greater cryptocurrency acceptance in traditional finance.