tl;dr
Custodia Bank has laid off 25% of its workforce, citing regulatory pressure from the Biden administration's crypto crackdown and legal battles with the Federal Reserve. CEO Caitlin Long links the layoffs to Biden's strict crypto regulations, referred to as "Operation Chokepoint 2.0." Meanwhile, form...
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Custodia Bank has laid off 25% of its workforce, citing regulatory pressure from the Biden administration's crypto crackdown and legal battles with the Federal Reserve. CEO Caitlin Long links the layoffs to Biden's strict crypto regulations, referred to as "Operation Chokepoint 2.0." Meanwhile, former President Trump is promoting a pro-crypto stance, hinting at easing regulations if elected, in contrast to Biden's approach.
Regulatory pressures under the Biden administration have made it challenging for crypto-focused institutions, leading to drastic measures such as layoffs.
According to Fox Business, Custodia Bank, a crypto-friendly bank, has announced the layoff of nine employees, representing 25% of its workforce. The bank’s decision comes as it struggles to secure a master account from the Federal Reserve, which is crucial for its operations.
The Joe Biden admin has taken a stringent approach to crypto regulations, with federal agencies, including the Federal Reserve, increasing oversight. Traditional banks have been cautioned against doing business with crypto firms, citing the volatility and regulatory uncertainties associated with digital assets.
As Custodia Bank and other crypto-related businesses face regulatory challenges, former President Donald Trump has positioned himself as a pro-crypto candidate in the upcoming presidential election. Trump, who once criticized cryptocurrencies, has since become an advocate for the industry.
Consequently, Donald Trump’s recent statements suggest that his administration would adopt a more favorable stance toward the crypto industry, in stark contrast to the current regulatory approach under the Joe Biden admin. This has sparked interest among crypto enthusiasts, who see Trump as a potential ally in their fight against stringent regulations.
More about C3 Ai Inc
Stock Market Analysis: C3 Ai Inc (C3)
Company: C3 Ai Inc
Sector: Technology, Services-Prepackaged Software
Market Cap: $2.92B
Revenue: $310.58M
Price: $28.39
Change: -2.34
Earnings per Share: 2.602
P/E Ratio: -0.901
Volume: 196M