Caitlin Long’s crypto bank loses appeal over Fed master account
A US appellate court upheld a ruling against Custodia Bank, affirming the Federal Reserve's denial of its master account application.Summary
The US Court of Appeals for the Tenth Circuit affirmed a lower court's ruling against Custodia Bank, the crypto-friendly institution founded by Caitlin Long, regarding its bid for a Federal Reserve master account. Custodia first applied in October 2020, and the Federal Reserve Bank of Kansas City ultimately rejected the application in 2023, citing risks inconsistent with "safe and sound banking practices" due to its digital asset focus. Custodia had sued in 2022, alleging unlawful delay. Following the Friday judgment, Custodia stated it is "actively considering" petitioning the appellate court for a rehearing, noting a strong dissent in the ruling that raised "serious Constitutional questions about the Federal Reserve."
(Source：Cointelegraph)