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
Bitcoin Price Surge Triggers Major Liquidations in Derivatives Market
The recent price uplift of Bitcoin has resulted in significant liquidations within the derivatives market, with over 200 million in liquidations primarily affecting short positions.
Altcoin Market Cap Stabilizes After Correction
The total crypto market cap for altcoins is attempting to stabilize after a prolonged corrective phase, indicating potential accumulation.
Potential Shift in Altcoin Market Dynamics
Recent analysis indicates a significant increase in altcoin trading volume, suggesting a potential end to Bitcoin's dominance.
Ethereum Price Analysis: Stability and Potential Decline
Ethereum price shows signs of stability above 2,320 but faces potential decline if it falls below 2,300.
Aave Faces Major Crisis Amid Exploit of rsETH Bridge
Aave is facing a major crisis due to an exploit at Kelp DAO, resulting in the theft of approximately $292 million in tokens and a significant drop in total value locked and AAVE token price.
Regulatory Warnings Highlight Risks of BG Wealth Sharing Scam
Regulatory bodies warned about BG Wealth Sharing, identifying it as a likely scam before its collapse.
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