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June 9, 2023

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July 28, 2022

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Crypto Bank Custodia Sues Federal Reserve

Coindesk

“Custodia filed suit against the U.S. Federal Reserve on Tuesday, saying the central bank was unlawfully delaying a decision on the crypto bank’s application for a master account. In the filing in the United States District Court of Wyoming, Custodia accused the Federal Reserve Board of Governors and Federal Reserve Bank of Kansas City of delaying the application process by 19 months and called the master account “critical” to Custodia’s business.” Such an account would allow Custodia to directly access the Federal Reserve, rather than going through an intermediary bank,” Custodia said in the complaint. It also accuses the Fed of adopting “standardless” procedures that allowed it “to act in complete secrecy, whenever and however they choose.” The suit said the Fed’s own paperwork says that “a master account decision “ordinarily takes [five to seven] business days,” and that the processing delay had “clearly violated the [one]-year statutory deadline for doing so.”

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