According to PANews, Wyoming financial institution Custodia Bank announced that its board of directors decided to reduce operations and "preserve" capital in response to the new Washington, DC government's reforms to crypto policies.

Custodia Bank said that by taking steps ahead of the expected shift in U.S. crypto policy, it will retain its banking charter, API payments, Bitcoin custody platform, stablecoin patents and compliance record.

Custodia Bank founder Caitlin Long expressed satisfaction with the team and its services, despite the withdrawal of banking services. Oral arguments in Custodia’s lawsuit against the Federal Reserve are scheduled for January 21, 2025.