Custodia Bank Denied Access to Federal Reserve’s Master Account
- The crypto bank Custodia has been denied access to a master account by the Federal Reserve after a ruling from the 10th Circuit Court of Appeals.
- The court affirmed a previous decision stating that the Fed has discretion to reject master account applications from eligible entities.
- Custodia initially filed its lawsuit in 2022, claiming delays in the Fed’s evaluation process and later contesting its rejection.
- A federal judge ruled last year that the Fed is not obligated to grant every eligible depository institution a master account.
- Custodia may petition for a rehearing by the 10th Circuit, as it considers its options following this latest ruling.
This decision underscores the Federal Reserve’s authority over master accounts and highlights ongoing challenges faced by crypto institutions seeking traditional banking services.
Despite Custodia’s efforts, including legal action, it remains without access to essential payment rails as confirmed by recent court rulings. (Source)
