Custodia Bank vs Fed: Former Solicitor General Paul Clement Joins Crypto Industry Fight đđš
Paul Clement Takes Custodia Bank vs Fed Fight Ahead
As said, in the recent Custodia Bank vs. Fed case, Paul Clement filed an Amicus brief on Wednesday, July 3, while supporting the crypto industry. Clement has gained popularity in his recent success in overturning the Chevron Defence in the Supreme Court case in the Supreme Court case involving Loper Bright fishermen.
In this ongoing legal fight, The Digital Chamber (TDC) and the Global Business Blockchain Council-USA (GBBC-USA) have expressed their significant interest and unique perspective. With extensive experience in the digital assets industry, the two organizations have argued that denying state-chartered banks a reliable path to participate in the national banking just because of the involvement with digital assets will threaten the growth and success of the trillion-dollar blockchain industry.
The two organization argue that upholding the lower courtâs decision will give politically unaccountable federal officials and unchecked power to stiffle innovation thereby cutting off legitimate businesses from having crucial access to the global financial system.
The District Court stated that the âFederal Reserve Bank of Kansas City (âFRBKCâ) has unreviewable discretion to denynonmember depository institutionsa master accountâ.
TDC and GBBC argued that despite following the legal boundaries, this court decision set dangerous precedence for any industry that might fall out with the Fed officials.
Paul Clement Raises Constitutional Concerns on Fedâs Structure
In the amicus brief, the former Solicitor General has raised some constitutional questions regarding the Fedâs structure. Clement states: âIn sum, by affording Federal Reserve Bank presidents significant and largely unconstrained discretionary power, the district courtâs decision raises serious constitutional questions under Article II.â
