Former US Attorney General representing the encryption industry questioned the constitutionality of the Federal Reserve's framework in the Custodia Bank case.

On July 4th, PANews reported that Paul Clement, former US Attorney General who represented Loper Bright in the Chevron case in the Supreme Court, has just submitted a friend-of-the-court brief on behalf of the cryptocurrency industry in the appeal case against the Federal Reserve by Custodia Bank (a crypto-friendly custody). After successfully overturning the principle of deference in the Chevron case, Clement raised a question in the submitted brief, whether the Federal Reserve violated the Second Amendment of the US Constitution by allowing the Fed chair to make official decisions. This is a major challenge for Custodia, as it seeks court intervention to limit the excessive power of the US central bank (which recently rejected Custodia's request for access to the master account). Clement said, 'In short, the Regional Court has given the Federal Reserve Bank Chairman such significant and almost unrestricted discretion that it raises serious constitutional questions about whether the Second Amendment is being violated.' Clement has basically questioned the constitutionality of the Fed's structure, which makes the significance of this case go far beyond just Custodia Bank's issue.