Appeals court upholds ruling that Custodia is not entitled to a Fed master account
An appeals court affirmed a district court's ruling that Custodia is not automatically entitled to a Federal Reserve master account.Summary
The U.S. Court of Appeals for the Tenth Circuit upheld a previous ruling from a Wyoming district court, confirming that the digital asset bank Custodia is not automatically entitled to a master account with the Federal Reserve. A master account grants direct access to the Fed's payment systems and the U.S. money supply. Custodia, founded by Caitlin Long, first applied for the account in 2020. The Federal Reserve Board of Governors intervened in 2021, and Custodia subsequently sued in 2022 over delays. The district court had previously ruled that the Federal Reserve retains discretion over granting these accounts. This decision comes as Federal Reserve Governor Christopher Waller recently proposed a concept for a "skinny master account" for payment innovators.
(Source：The Block)