Former Attorney General Paul Clement Joins Crypto Industry Fight
A week after Custodia Bank challenged the Fed’s authority to reject the master account in the 10th Circuit Court of Appeals, former Attorney General Paul Clement filed an amicus brief on behalf of the crypto industry.
Paul Clement Highlights Custodia Bank and Fed Struggle
As reported, in the recent Custodia Bank vs Fed case, Paul Clement filed an Amicus brief on Wednesday, July 3, in support of the crypto industry. Clement gained popularity with his recent success in overturning the Chevron Defense in the Supreme Court case involving Loper Bright fishermen.
Also Read: US SEC Takes Major Blow In Chevron Howey Test Case, Impact For Crypto
In this ongoing legal battle, the Digital Chamber (TDC) and the Global Business Blockchain Council-USA (GBBC-USA) have brought significant interest and unique perspectives to the table. The two organizations, with extensive experience in the digital asset sector, argued that the failure of state-chartered banks to provide a trusted path for national banking simply because of their involvement in digital assets would threaten the growth and success of the trillion-dollar blockchain industry.
The two organizations argue that upholding the lower court’s decision would stifle innovation by giving politically unaccountable federal officials and unchecked power, thus preventing legitimate businesses from gaining significant access to the global financial system.
The District Court stated that “the Federal Reserve Bank of Kansas City (“FRBKC”) has the non-reviewable discretion not to open master accounts with non-member depository institutions.
TDC and GBBC argued that, despite adhering to legal limits, this court ruling represents a dangerous precedence for any industry that might be at odds with Fed officials.
Paul Clement Expresses Constitutional Concerns Over Fed’s Structure
In the amicus brief, the former attorney general raised some constitutional questions about the structure of the Fed. “In sum, the district court’s decision, which grants significant and largely unfettered discretion to Federal Reserve Bank chairmen, raises serious constitutional questions under Article II,” Clement said.
“The district court’s decision threatens the dual system by giving Federal Reserve Bank officials irrevocable discretion to “effectively cripple” it.[e]“Government-approved banks operate legally,” he added.
Also Read: Custodia Bank CEO Predicts Bitcoin Bull Market to “Roar”
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Bhushan is a FinTech enthusiast and has a good grasp of financial markets. His interest in economics and finance draws his attention to the emerging Blockchain Technology and Cryptocurrency markets. He is a constant learner and motivates himself by sharing the knowledge he acquires. In his spare time, he reads thrillers and sometimes explores his culinary skills.
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