Anthony Scaramucci Says Custodia Bank Ruling is Hostile Attack on Crypto

Anthony Scaramucci, prominent investor and entrepreneur, says the recent court ruling against a Wyoming-based institution, Custodia Bank, in a crypto-related case lacks coherence and a clear hostile attack on crypto by entrenched interests.

Scaramucci expressed his dissatisfaction on X social media platform in a response to a post by Fox Business news journalist, Eleanor Terrett on the merits of the case. He went on to cite an earlier ruling by the judge involved, noting that it contradicts the decision given, based on precedence.

Scaramucci Alleges Hostility Towards Crypto Industry

The ruling, delivered by Judge Scott Skavdahl of the District of Wyoming, denied Custodia Bank’s motion for judgment, effectively stating that the Federal Reserve is not obligated to grant the bank access to its master accounts.

Judge Skavdahl’s ruling has sparked debate and raised questions about crypto-related banking services regulation. In fact, Scaramucci seems to suggest in his post that the decision was driven by what he described as hostile actions against the crypto industry, allegedly orchestrated by entrenched special interests represented by Senator Elizabeth Warren, who was tagged in his post.

Scaramucci has been known to be blunt in his remarks and had called out disgraced entrepreneur, Sam Bankman-Fried for his betrayal and role in the collapse of FTX.

The Crux of the Custodia Bank Case

Custodia Bank’s argument in its motion centered on the assertion that without access to the Fed’s master accounts, it would suffer a disadvantage compared to its competitors. However, in his judgment, Judge Skavdahl found this argument insufficient to warrant a favorable ruling. The only option for Custodia Bank is to contemplate a potential appeal.

The crux of the issue lies in the reliance on intermediaries for entities lacking direct access to the Fed’s master accounts. Custodia Bank had filed the lawsuit in 2022 following the Fed’s denial of its master account access request. Experts say the ruling is another blow for Custodia which was last year denied membership of the Reserve system by the United States Federal Reserve Board.

Implications of Custodia Bank Ruling on Financial Regulation

However, the interpretation of the court’s ruling has sparked controversy in the crypto community besides Scaramucci’s dissatisfaction. Fox Business reporter Eleanor Terrett in her post on X also highlighted seeming contradictions within the opinion.

Terrett noted that while one perspective suggests limitations on the Fed’s discretion in granting master account access, another implies no such limitations, leaving room for ambiguity and further legal scrutiny. Stakeholders say as events unfold in the coming days, the implication of the ruling and the steps that Custodia Bank will take an appeal or otherwise, will help set financial regulation on a proper path.