John Deaton, the creator of CryptoLaw and a counsel for XRP investors, draws attention to the most crucial case.
It turns out that this isn’t Ripple or Coinbase, which is interesting. Deaton refers to this as the Custodia Bank v. Federal Reserve case. Given the ongoing legal disputes between Ripple and Coinbase, he continues, many people might find this surprising.
He claims that the SEC actions against Ripple, Coinbase, and Binance are similarly significant, but that fewer people are aware of the Custodia case and its effects on the cryptocurrency sector.
Deaton continues by elaborating on the Custodia case’s consequences while referencing the most current Binance U.S. situation.
Binance U.S. just provided an update, stating that its banking partners are getting ready to halt fiat dollar withdrawal channels as early as June 13. This will stop USD deposits.
This comes just after the SEC sued Binance and Changpeng Zhao, the company’s CEO. Whether we like it or not, today’s crypto enterprises require banks for on- and off-ramps, according to the creator of CryptoLaw.
According to Deaton, Custodia Bank has a highly contentious and radical idea: refrain from fractional banking while keeping 100% in reserves. A bank run is no longer a concern when there are 100% in reserves since there is no concern that you won’t be able to withdraw all of your money or assets at once.
According to Deaton, the Federal Reserve disapproves of this ground-breaking idea and, disregarding its legal obligation, unilaterally refused Custodia Bank a charter. The Fed was sued by Custodia, and the judge recently rejected the Fed’s attempt to dismiss the case, enabling Custodia to continue with discovery.
Attention to be placed on Ripple, Binance, Coinbase lawsuits
More focus will be given to recent SEC cases against Binance and Coinbase, which have rocked the cryptocurrency sector, as well as how the Custodia case develops in the upcoming weeks.
A significant sell-off is currently taking place in the altcoin market, with certain cryptocurrencies seeing discounts of up to 30%. At $0.49, XRP is still down 7.61% over the past day.
The publication of the Hinman documents, the Binance SEC hearing, and a House hearing on digital assets all fall on June 13, making it a crucial day.
