Reserve

Bank

Long

April

Custodia Bank has <a href="https://storage.courtlistener.com/recap/gov.uscourts.wyd.61107/gov.uscourts.wyd.61107.321.0_1.pdf" target="_blank" rel="">filed </a>a notice of appeal on April 26, challenging a lower court’s decision from March denying its attempt to officially join the U.S. banking system. 
The Cheyenne, Wyoming-based bank is seeking a federal-level appeals court’s review of a decision by Judge Scott Skavdahl, who <a href="https://crypto.news/court-custodia-bank-federal-reserve-master-account/" rel="">dismissed Custodia’s request </a>for a Federal Reserve master account in the U.S. 
A master account gives banks access to Federal Reserve services (i.e., the Automated Clearing House network for electronic payments). 
Additionally, Custodia is <a href="https://storage.courtlistener.com/recap/gov.uscourts.wyd.61107/gov.uscourts.wyd.61107.320.0.pdf" target="_blank" rel="">appealing a bill of costs </a>submitted by one of the defendants, the Federal Reserve Bank of Kansas City. The bill amounts to $25,728.25 for deposition transcripts. 
Custodia argues that the decision on costs should be postponed until after the appeal is concluded, referencing a similar case where costs were not imposed at such an early stage. 
On March 29, the court found that Custodia Bank was not entitled to a Fed master account and rejected a writ of mandamus, which would have required the Kansas Fed to deliberate on its application. Custodia’s petition was later dismissed for review. 
The court concluded that banks are not legally entitled to master accounts simply because they can apply for them. It also determined that Custodia could not prove that the Federal Reserve Board of Governors made a final decision on the denial. 
The court also ruled that it lacked jurisdiction over Custodia’s complaint due to the lack of a final decision. 
 You might also like: <a href="https://crypto.news/hong-kongs-custodian-hex-trust-seeks-new-funding-amid-rising-appetite-for-crypto/" rel=""> Hong Kong’s custodian Hex Trust seeks new funding amid rising appetite for crypto </a> 
Custodia Bank, known for its specialization in crypto services and lack of FDIC insurance, contended that the Federal Reserve’s prolonged delay and eventual denial of its application were arbitrary and violated the Administrative Procedure Act. 
The act oversees the processes federal agencies must follow in rule-making and enforcement. 
Following the court order, Custodia CEO Caitlin Long told FOX Business that the bank would appeal the decision. 
Long also argued that previous decisions have given the Federal Reserve “unfettered discretion” to deny new master accounts and shut current ones. She further stated that Custodia was not the only bank impacted by such a denial of access. 
As crypto.news reported earlier, on Nov. 7, Long <a href="https://crypto.news/custodia-bank-announces-bitcoin-custody-platform-launch/" rel="">announced </a>the launch of Custodia’s <a href="https://crypto.news/tag/bitcoin/" rel="">Bitcoin </a>custody platform after gaining approval from the Wyoming Division of Banking. 
The service aims to cater to businesses like fiduciaries and fund managers, enhancing operational efficiency and reducing risk. 
 Read more: <a href="https://crypto.news/federal-reserve-bank-of-atlanta-urges-caution-while-embracing-crypto-in-banking/" rel=""> Federal Reserve Board of Governors director urges caution while embracing crypto in banking </a>

Custodia Bank claps back against court ruling, wants Fed master account

crypto.news

Other articles published on Apr 28, 2024

Market Dynamics and Investor Moves Impact Shiba Inu Coin’s Performance

Watch Out: 26 Altcoins Have Massive Token Unlocks in the New Week – Here’s the Day-by-Day, Hour-b...

Is It More Profitable to Stake BNB or FDUSD in Binance Launchpools? Here’s How Much 21 Projects B...

AAVE Price Prediction: Can AAVE Retain Round Mark of $100?

Solana Co-Founder Advocates for Memecoins Amid Crypto Debate

AI in Education: Case Studies from Around the World Showcase Innovative Solutions

Join our free newsletter for daily crypto updates!