Federal Court Rejects Custodia Bank’s Master Account Request
The US Court of Appeals rejected Custodia Bank's appeal for a master account, ending its five-year battle for Fed access.Summary
A US federal court has definitively rejected Custodia Bank’s bid for a master account, concluding the bank’s five-year legal challenge against the Federal Reserve. The Court of Appeals for the Tenth Circuit voted 7-3 against hearing Custodia’s final appeal, upholding the Fed’s discretion over granting such accounts. Custodia argued that the Monetary Control Act entitled it to access, but the courts disagreed. This decision follows Kraken receiving a limited master account, raising hopes for other crypto firms, but Custodia’s case highlights the difficulties in gaining full access to the traditional financial system. Judge Tymkovich dissented, stating that denying a master account is “akin to a death sentence” for a bank, especially after the Fed initially indicated Custodia’s application had ‘no showstoppers.’
(Source：Cointelegraph)