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
Micron Stock Price Target Reaches $1500 Amid AI Memory Chip Boom
Analysts are increasingly optimistic about Micron Technology's stock, with a price target of $1500 driven by strong earnings projections and demand for AI memory chips.
Marvell Technology Set to Join S&P 500 Index
Marvell Technology is set to join the S&P 500 index on June 22, boosting investor confidence and stock prices.
Morpho Secures $175 Million Funding to Strengthen DeFi Position
Morpho, a decentralized lending protocol, has raised $175 million in funding to strengthen its position in the DeFi space.
Metaplanet Considers Share Repurchase Program Amid Bitcoin Price Decline
Metaplanet, Japan's largest publicly traded Bitcoin treasury company, is considering a share repurchase program to enhance its Bitcoin yield per share as its market value falls below its Bitcoin holdings.
BlackRock and XRP Ecosystem Connection Strengthens
A documented link between BlackRock and Ripple's ecosystem has emerged, highlighting the role of Wormhole in facilitating interoperability.
ZachXBT Raises Concerns Over Humanity Protocol Incident
ZachXBT raises concerns about the Humanity Protocol incident, suggesting it may be a staged exit rather than a genuine hack, impacting the project's credibility.
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