Fed Denies Custodia Bank Application To Join the Federal Reserve System
The Federal Reserve Board has rejected Custodia Bank’s application to become a member of the Federal Reserve System. In its announcement, the Fed stated that the application was “inconsistent with the required factors under the law.” It also claimed Custodia had an “insufficient” management framework and cited an earlier joint declaration by the Fed with the Federal Deposit Insurance Corporation and Office of the Comptroller of the Currency that found crypto assets to be at odds with sound banking practices.
JP Morgan Analyst Calls on Fed to Stop Hiking Interest Rates
The economy may tip into recession as the Fed raises interest rates past February, predicts the analyst.
Former Fed Chair Says Crypto Is Too Dependent on ‘Greater Fool Theory’ to Be a Desirable Investment
Former Federal Reserve Chairman Alan Greenspan says crypto is “too dependent on the ‘greater fool theory’ to be a desirable investment.” However, he noted that the collapse of crypto exchange FTX was “purely fraud,” rather than the result of a feature inherent to crypto. He does not expect the FTX contagion to spread far beyond the crypto space.
Bitcoin Buckles, Bounces As Fed Signals More Aggressive Rate Hikes to Come
The price of Bitcoin dipped following the release of the Federal Reserve’s December meeting minutes, which showed the central bank’s plans to continue raising interest rates.
US Federal Reserve, FDIC and OCC Warn Banking Organizations About Crypto Risks
The Federal Reserve, FDIC and OCC have warned banks in the United States on ‘key risks associated with crypto assets and crypto asset sector participants.’
‘Forget a Pivot’ — Markets Won’t See Fed Rate Cut Boost in 2023, Says Analyst
In a Twitter thread on Dec. 20, Jim Bianco, head of institutional research firm Bianco Research, said that the Federal Reserve would not “pivot” on rate hikes next year.
ETH, ADA, XRP Suffer Losses As 24-Hour Market Liquidations Rise Above $110 Million
Cryptocurrencies suffered a second day of losses after the Federal Reserve approved a lesser interest rate hike than previous ones this year on Dec. 14. The Fed has raised interest rates by 75 basis points four times this year to curb inflation, which is currently at a 40-year high in the United States.
