Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • ADOPTION
  • TRADING
  • HACKING
  • SLOT
Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • ADOPTION
  • TRADING
  • HACKING
  • SLOT
Crypto Flexs
Home»TRADING NEWS»A U.S. court sided with the Federal Reserve in the Custodia Bank master account case.
TRADING NEWS

A U.S. court sided with the Federal Reserve in the Custodia Bank master account case.

By Crypto FlexsMarch 30, 20242 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
A U.S. court sided with the Federal Reserve in the Custodia Bank master account case.
Share
Facebook Twitter LinkedIn Pinterest Email

A recent court ruling dealt a blow to Custodia Bank’s ambitions to secure a Federal Reserve master account and highlighted the challenges digital asset banks face when integrating with the traditional banking system.

Court ruling against Custodia Bank

The U.S. District Court for the District of Wyoming, led by Judge Scott Skavdahl, denied Custodia Bank’s request for a Federal Reserve master account, a critical asset that gives the bank direct access to the Federal Reserve’s payment system.

Custodia’s claim for equal treatment

Custodia Bank argued that the lack of a master account reduced it to ‘second-class citizen’ status, dependent on intermediary banks. This dependence undermines the bank’s operational autonomy and efficiency, the bank argued.

Court decision and Custodia response

Judge Skavdahl’s decision not only denied the bank’s master account bid, but also denied its plea for declaratory judgment on the matter. Despite these setbacks, Custodia Bank is not retreating. A spokesman for the bank said it would explore all available options, including a possible appeal.

background of the incident

Custodia’s pursuit of a Federal Reserve Master Account began with applications in October 2020. Access to these accounts connects banks directly to the Fedwire network, which is pivotal for efficiently processing large transactions. But the Federal Reserve’s rejection in January 2023, largely due to Custodia’s cryptocurrency-related activities, highlighted the regulatory hurdles facing blockchain-based financial institutions.

Bigger implications for SPDI

Custodia is one of Wyoming’s pioneering special purpose depository institutions (SPDIs) established to provide banking services to companies in the cryptocurrency industry that are unable to secure traditional banking relationships. This court ruling highlights the ongoing struggle of ‘blockchain banks’ to gain equal footing in the federal banking system.

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

XRP price prediction by reducing the volume of RLUSD (RIPPLE USD)

June 7, 2025

Why is the ecosystem of the SEI network boom in the second quarter?

June 6, 2025

Why is the ecosystem of the SEI network boom in the second quarter?

June 6, 2025
Add A Comment

Comments are closed.

Recent Posts

ETF publisher’s latest warning -SEC’s approval process ‘Innovation, AIDS GIANTS’

June 7, 2025

Solana (SOL) introduces Alpenglow for faster blockchain agreement.

June 7, 2025

The Foresight Ventures report shows a collection shift where more than 32,000 sellers around the world accept encryption.

June 7, 2025

$ AB is live on Binance, guiding the new era of new cross chain asset mobility.

June 7, 2025

Trump memoin is faced with a $ 520m lock in July and the price drops by 85%.

June 7, 2025

Vaneck launches GPZ ETF for alternative asset managers.

June 7, 2025

Apple, X, Airbnb Eye Stablecoin Integration

June 7, 2025

Strategy to raise almost $ 1B by STRD priority proposal for BTC accumulation

June 7, 2025

Hash research CEO is appointed chief policy officer at the presidential office

June 7, 2025

Thorchain integrates the director of the XRP to facilitate the distributed swap.

June 7, 2025

Thorchain integrates the director of the XRP to facilitate the distributed swap.

June 7, 2025

Crypto Flexs is a Professional Cryptocurrency News Platform. Here we will provide you only interesting content, which you will like very much. We’re dedicated to providing you the best of Cryptocurrency. We hope you enjoy our Cryptocurrency News as much as we enjoy offering them to you.

Contact Us : Partner(@)Cryptoflexs.com

Top Insights

ETF publisher’s latest warning -SEC’s approval process ‘Innovation, AIDS GIANTS’

June 7, 2025

Solana (SOL) introduces Alpenglow for faster blockchain agreement.

June 7, 2025

The Foresight Ventures report shows a collection shift where more than 32,000 sellers around the world accept encryption.

June 7, 2025
Most Popular

Will the Avalanche NFT help AVAX go green?

January 8, 2024

Gemini, Genesis Deny Motion to Dismiss SEC Earnings Complaint

March 13, 2024

Cellula Introduces Programmable Incentive Layer to Gamify Asset Issuance

August 15, 2024
  • Home
  • About Us
  • Contact Us
  • Disclaimer
  • Privacy Policy
  • Terms and Conditions
© 2025 Crypto Flexs

Type above and press Enter to search. Press Esc to cancel.