Federal Reserve unfairly shutting out Wyoming's Crypto Banks and saying if we start granting permission to Crypto Banks,there will be a couple hundred of them soon ! Fed think this is enough to block the applications!

To established a Crypto Bank,a company needs SDPI charter from the local authorities then a master account with Federal Reserve to arrange payments with Central Bank and to conduct settlements with other financial institutions.

Kraken and Avanti are two entities active in Crypto business ,both have received permission under Wyoming law to become Special Purpose Depository Institutions(SDPI)-a new type of financial entity that can transact in Crypto while also performing traditional banking services.

After receiving SDPI charter from authorities,next step is to require a master account at Federal Reserve to arrange payments with Central Bank and conduct settlements with other financial institutions.

But here comes the main problem, Federal Reserve blocked the applications to open the master account without any legitimate reasons.Not only this, Federal Reserve sat on SDPI applications for more than a year and has been slow to communicate with Crypto Banks on why the whole process is taking so much time.

Fed Chair Jerome Powell defending the FED's decision to block Crypto Banks with this statement

if we start granting these, there will be a couple hundred of them soon.They are hugely precedential, which is why I am taking my time on this"

Even though Mr. Jerome Powell agreed that there are good arguments for treating them as eligible to receive accounts.Just because it's "Crypto Bank" they can't get the permission for master account.

And people think authorities are now realizing the potential of Crypto and ready to accept it as a part of financial system.They are just saying nice words so that their public image remain intact, and their actions are in the direction to stop Crypto at any cost.

Source : https://decrypt.co/90186/powell-lummis-spdi-kraken-wyoming