Custodia Bank Appeals Denied Entry into US Banking System

Custodia Bank Challenges Denied Entry into US Banking System

Custodia Bank has recently filed a notice of appeal challenging a lower court’s decision that denied its attempt to officially join the U.S. banking system back in March. The Cheyenne, Wyoming-based bank is now seeking a review from a federal-level appeals court regarding this decision.

Key Points:
– Custodia Bank seeks a Federal Reserve master account in the U.S.
– A master account grants access to Federal Reserve services like the Automated Clearing House network.
– The bank is also appealing a bill of costs submitted by the Federal Reserve Bank of Kansas City.

The court’s decision on March 29 denied Custodia Bank’s request for a Fed master account and rejected a writ of mandamus that would have required the Kansas Fed to review its application. The court ruled that banks are not automatically entitled to master accounts upon application submission and that Custodia failed to prove that a final decision was made by the Federal Reserve Board of Governors.

Custodia Bank, known for its specialization in crypto services, argued that the Federal Reserve’s denial was arbitrary and violated the Administrative Procedure Act. CEO Caitlin Long stated that the bank would appeal the decision, citing the need to challenge the Federal Reserve’s discretion in denying new master accounts.

In conclusion, Custodia Bank’s appeal highlights the challenges faced by banks seeking to enter the U.S. banking system, particularly in the realm of cryptocurrency services. Stay informed about the latest developments in the financial sector on Global Crypto News.