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 and Other Cryptocurrencies See Inflows Amid Broader Market Challenges
XRP and other cryptocurrencies attracted significant inflows last week despite the overall market downturn.
Significant Stock Declines Following China's Regulatory Announcement
Significant stock declines were observed following China's regulatory announcement on May 25, 2023, with Tiger Brokers' shares falling over 10% and Futu Holdings dropping more than 5%.
China's Regulatory Crackdown on Offshore Brokerages
China's Securities Regulatory Commission announced penalties for three offshore brokerages due to illegal operations targeting mainland investors.
South Korea Indicts Five in Landmark Decentralized Exchange Fraud Case
South Korean prosecutors have indicted five individuals in the country's first-ever criminal prosecution of a decentralized exchange rug pull, marking a significant legal precedent.
Ancient Ethereum Wallet Reactivated After 11 Years
An old Ethereum wallet containing 2,000 ETH has been reactivated after nearly 11 years of dormancy.
Arthur Hayes Highlights NEAR and Zcash as Key Privacy Assets
Arthur Hayes highlights NEAR and Zcash as key components of his investment strategy in privacy-focused cryptocurrencies, predicting significant returns.
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