Custodia Bank Denied Federal Reserve Master Account: Impact on the Crypto Market
Saturday, 30 March 2024, 19:35
Custodia Bank's Federal Reserve Master Account Denied
Custodia Bank suffered a legal setback as it lost its bid for a Federal Reserve master account following a court ruling against it.
Why Custodia Lost Its Case
- Delays in Processing Application: Custodia's lawsuit cited significant delays in processing its application.
- Undue Influence Allegation: Allegations contended undue influence from the Federal Reserve Board.
- Judge's Decision: Wyoming district judge affirmed Federal Reserve's discretion in granting or denying the account applications.
Despite the setback, Custodia hints at a possible appeal, with US Senator Cynthia Lummis criticizing the ruling.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.