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.
**Custodia Bank Loses Bid for Federal Reserve Master Account**
by Giorgi Kostiuk
2 years ago
Other news
Hyperliquid's Model Signals Shift in Crypto Market Dynamics
The recent discussion surrounding Hyperliquid's noKYC model has significant implications for the crypto market, particularly in terms of institutional adoption and regulatory sensitivity.
Changpeng Zhao Sheds Light on Hyperliquid's NoKYC Derivatives Model
Changpeng Zhao discusses Hyperliquid's noKYC derivatives model, emphasizing its market niche for fast execution and privacy.
Cboe Introduces Continuous Futures for Bitcoin and Ether
Cboe has launched continuous futures for Bitcoin and Ether, providing a regulated alternative for institutional investors and enhancing access and liquidity for traders.
Ripple Achieves Preliminary CASP License in Luxembourg
Ripple has secured a preliminary Crypto Asset Service Provider license in Luxembourg, enabling the rollout of Ripple Payments across the EEA and ensuring compliance with MiCA regulations.
Crypto Market Shifts Towards Institutional Involvement
The cryptocurrency market is currently experiencing a significant shift towards more institutional involvement and increased sensitivity to regulatory policies.
Department of Education Boosts Autopay Discount to 1% for Student Loan Borrowers
Starting July 1, 2026, student loan borrowers can receive a 1% discount on repayments by enrolling in autopay.
Be the first to know about crypto news every day
Get crypto analysis, news and updates right to your inbox! Sign up here so you don’t miss a single newsletter