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
XRP Social Media Sentiment Surges to Five-Week High
Data shows that the social media sentiment toward XRP has surged to a five-week high, while Bitcoin and Ethereum remain dull.
House Democrats Call for Investigation into World Liberty Financial
A coalition of over 40 House Democrats is urging the Treasury Department to investigate World Liberty Financial due to potential conflicts of interest and national security risks.
Analysts Maintain Positive Outlook on Nvidia Stock After Deal Restructuring
Analysts maintain a positive outlook on Nvidia's stock despite the restructuring of the Nvidia OpenAI deal, with a high average price target and strong investor confidence.
Nvidia Restructures OpenAI Deal to $30 Billion Equity Stake
Nvidia has restructured its deal with OpenAI, reducing its commitment from $100 billion to a $30 billion equity stake.
Goldman Sachs Expands Crypto Exposure Beyond Bitcoin
Goldman Sachs has diversified its cryptocurrency holdings, now including Ethereum, XRP, and Solana, while CEO David Solomon shares his personal Bitcoin investment.
Crypto Market Faces Significant Outflows Amid Bearish Sentiment
The cryptocurrency market is currently facing a bear market, characterized by significant outflows from crypto funds.
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