Custodia Bank Loses Bid for Federal Reserve Master Account

by Giorgi Kostiuk

2 years ago

The Custodia Bank sued the Central Bank in 2022 because of a delayed decision on their master account application. A judge ruled that the Federal Reserve is not required to provide the bank with access to its master account. Judge Scott Skavdahl stated that Federal Reserve Banks can grant master accounts, but Custodia did not receive approval for theirs. The bank argued that every depository institution under state law should be entitled to a master account, but the court dismissed the claim. Custodia accused the Fed of violating the Administrative Procedures Act, but the court rejected this claim as well. Custodia's application for a master account was filed with the Kansas City Fed in 2020 and was denied in January 2023. The bank is governed by Wyoming law as a special purpose depository institution.

Rewards

More rewards

Discover enhanced rewards on our social media.

Other news

Congress Proposes AI Kill Switch Legislation

Congress members propose the AI Kill Switch Act to give the federal government authority to shut down AI models.

Emily Cartera day ago

Frax Governance Discusses Proposal for Early Redemptions from Locked Ethereum Pools

Frax governance is discussing a proposal for early redemptions from locked Ethereum pools with a 4% penalty fee directed to the Frax treasury.

Tomas Novaka day ago

Frax Governance Proposes Morpho Lending Market for bdUSD and frxUSD

Frax governance is discussing a proposal to create a Morpho lending market for bdUSD and frxUSD to enhance stablecoin liquidity and borrowing demand.

Katerina Papadopouloua day ago

EigenLayers Forum Engages in ELIP018 Proposal Discussion

The EigenLayers forum is currently engaged in a debate over the draft proposal ELIP018, which introduces a framework known as RETIRE, aimed at providing a terminal exit route for restakers.

Maya Lundqvista day ago

Uniswap Governance Explores Private Execution Path for Swaps

Uniswap governance is discussing a proposal for an optional private execution path for swaps to enhance user privacy and reduce transaction information exposure.