Custodia Bank Rejected by Fed: What’s Next?

• The U.S. Federal Reserve has denied a request from Custodia Bank, formerly known as Avanti, to become supervised by the government agency.
• Caitlin Long is the CEO and founder of Custodia Bank and it obtained a charter in Wyoming that allows it to operate a special-purpose depository institution and call itself a crypto bank.
• Kraken also obtained the same charter to operate similarly, and both companies have complained about federal regulation in recent weeks.

Custodia Bank Rejected By Federal Reserve

The U.S. Federal Reserve announced on Feb. 23 that it had denied a request through which Custodia Bank sought supervision from the government agency. The bank, formerly known as Avanti, is led by CEO and founder Caitlin Long who obtained a charter in Wyoming that allows it to operate a special-purpose depository institution and call itself a crypto bank.

Reasons For Rejection

The Federal Reserve justified its original rejection on Jan. 27 by stating that Custodia does not have federal deposit insurance and by highlighting the risks of its various cryptocurrency-focused activities. The government agency said that Custodia’s application, as originally submitted, is „inconsistent with the required factors under the law.“

Kraken Also Obtains Charter

Crypto exchange Kraken has also obtained the same charter to operate similarly as Custodia Bank has done. Both companies have complained about federal regulation in recent weeks due to their involvement with cryptocurrencies which are not yet fully regulated or accepted by governments around the world for transactions and investments..

Caitlin Long’s Reaction

In response to this decision from the Fed, Caitlin Long has expressed her disappointment at what she sees as an unnecessary barrier for companies seeking to innovate within cryptocurrency industries regulated under existing laws: “I am disappointed but remain hopeful that there will be progress over time“.

Conclusion

Custodia Bank’s application was rejected based on its lack of federal deposit insurance and risk associated with its cryptocurrency activities; however, despite this setback there remains hope that progress can still be made towards further development within this industry going forward

Mt. Gox Creditors Opt for Bitcoin Payment Guaranteeing 90% of Funds Owed

• Two of Mt. Gox’s largest creditors, Bitcoinica and MtGox Investment Funds (MGIF), have chosen an early lump sum payment option that will be paid out in 90% Bitcoin.
• This payment is scheduled for September 2023 and allows creditors to receive their payments sooner and avoid any potential market impact from a large-scale Bitcoin sell-off.
• Creditors who choose the lump sum option can elect to receive their payment in a mix of BTC, BCH, and yen, or they can ask for the entire amount to be given in fiat.

Mt. Gox’s Leading Creditors Opt for Bitcoin Payment

Two of Mt. Gox’s largest creditors, Bitcoinica and MtGox Investment Funds (MGIF), have opted for an early lump sum payment option that guarantees them 90% of the funds owed. The payment is scheduled for September 2023.

Avoiding Potential Market Impact

This option allows them to receive their payments sooner, while avoiding any potential market impact from a large-scale Bitcoin sell-off.

Payment Options

Creditors who choose the lump sum option can elect to receive their payment in a mix of BTC, BCH, and yen, or they can ask for the entire amount to be given in fiat.

Settlement Litigation

The other alternative is to wait for all Mt. Gox litigation to settle which may offer higher payouts but could take another 5-9 years.

Background Information on Mt. Gox Hack

In 2014, hackers stole 850,000 BTC valued at $460 million at the time from Mt. Gox exchange following which it was left with roughly 142,000 BTC , 143,000 bitcoin cash (BCH) ,and 69 billion Japanese yen .

US Leads the World in Crypto Success: $46.95B and Counting

Summary

  • The US topped Coin Journal’s list of most successful crypto countries, with an estimated value of $46.95 billion.
  • In the US, 1,992 crypto-related businesses employ 5,691 people.
  • Other top countries in the list include the UK, Germany, France and Vietnam.

The US Leads Global Crypto Industry

The United States sits atop Coin Journal’s list of most desirable crypto countries, garnering a 9.94 score out of 10. The US crypto industry is worth an estimated $46.95 billion and employs 5,691 people across 1,992 crypto-related businesses. This dwarfs that of other countries on the list such as the UK ($8.16 billion), Germany ($4.6 billion), France ($5.7 billion) and Vietnam ($2.7 billion).

Factors Used in Ranking

Coin Journal’s report took multiple factors into account when ranking these countries including the number of cryptocurrency owners by country, investment companies, crypto startups and average gains from crypto per country. Other reports such as Chainalysis‘ annual Geography of Cryptocurrency Report also include wider issues like macroeconomic environment and policy/regulatory conditions when making its recommendations.

Money Talks in Crypto Industry

In the cryptocurrency industry money talks with capital driving geographies with more potential to work with it. For instance Switzerland is home to Zug’s famous „crypto valley“ canton; while UAE is home to Binance and Estonia has been referred to as „digital capital of Europe.“ These places have made various top five lists but none have come close to competing with the U.S., which still remains at number one for now.

No Single Metric Captures All Factors In Rankings

Though money obviously plays a key role in determining success for any given country or region’s cryptospace it does not necessarily reveal all factors necessary for a complete picture. Therefore while rankings are useful they should be taken only as part of a larger analysis taking into account all relevant factors such as quality of life or cost of living when considering investments opportunities in different regions around the world .

Conclusion

Mastercard NFT Product Lead Resigns After Harassment, Tokenizes Resignation Letter as NFT

• Mastercard NFT product lead Satvik Sethi announced on February 2nd that he has resigned from his position due to harassment and distress from management.
• Sethi tokenized his resignation letter as an NFT and is selling it for 0.023 ETH ($38.00) to support himself.
• Mastercard has not commented on Sethi’s resignation, but it is likely that their cryptocurrency plans will remain unaffected.

Mike Dalton was surprised to hear the news on February 2nd that Satvik Sethi, the Mastercard NFT product lead, had resigned from his position. Sethi had been with the company for the past year, and was responsible for fielding all questions about Web3 from partners, clients, and regional teams.

Sethi announced his resignation in a series of tweets, citing harassment and distress from management as the primary reason. He stated that his salary had been denied to him, his employment contract had been overridden, and that he had been blocked from online accounts. In order to support himself, Sethi tokenized his resignation letter as an NFT and is selling it at 0.023 ETH ($38.00). This token is being sold on Manifold, and has been met with 38 mints at the time of writing.

In addition to selling his resignation letter, Sethi stated that he will air drop additional artwork to his supporters in the future. Despite his key role in the company, Mastercard has not commented on Sethi’s resignation. However, it is likely that their cryptocurrency plans will remain unaffected. Last June, Mastercard had partnered with various NFT marketplaces, including ImmutableX, Candy Digital, The Sandbox, Mintable, Spring, and Nifty Gateway, allowing cardholders to buy NFTs with their cards.

It is uncertain if Mastercard will be able to find a suitable replacement for Sethi’s role, or if they will instead choose to divide the responsibilities between different members of the team. Nevertheless, Sethi’s resignation is a reminder of the importance of creating a respectful and supportive work environment for all employees.