Custodia ruling a ‘speed bump’ not a roadblock for crypto banks, says TD Cowen

TD Cowen's Washington Research Group, led by Jaret Seiberg, stated that the appeals court ruling denying Custodia a Federal Reserve master account is a "speed bump" rather than a "road block" for crypto banks seeking central bank access. The ruling upheld a district court decision that the Federal Reserve has discretion over granting master accounts, which provide direct access to Fed payment systems. Seiberg believes this is a temporary setback toward the eventual merging of traditional finance and crypto, supported by the Trump administration. The most likely path forward for crypto firms is the proposed "skinny master account" by Fed Governor Christopher Waller, which would offer limited payment rail access while mitigating risks. TD Cowen expects a proposal for these skinny accounts in the coming months. Additionally, Seiberg noted that crypto firms are pursuing national bank trust charters through the OCC, an option he believes Comptroller Jonathan Gould will support despite banking sector pushback.

(Source：The Block)