Fun

US court favors Fed in Custodia Bank case, rejects appeal for review

News Feed - 2024-03-30 10:03:49

Ciaran Lyons7 hours agoUS court favors Fed in Custodia Bank case, rejects appeal for reviewCustodia Bank argued that without a master account, it is a “second-class citizen” at the mercy of an intermediary bank.2069 Total views58 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksThe United States District Court for the District of Wyoming has ruled against granting Custodia Bank a U.S. Federal Reserve master account and dismissed the digital asset bank’s plea for a declaratory judgment. However, Custodia claims it is not backing down and is exploring all possible avenues.


“We are reviewing the court’s decision and all of our options, including appeal,” a spokesperson for Custodia Bank told Cointelegraph.


In a March 29 filing, Judge Scott Skavdahl dismissed Custodia’s bid to secure a Federal Reserve master account. The account, often called “a bank account for banks,” facilitates financial institutions’ access to the Federal Reserve’s payment systems.Court filing in the U.S. District Court for the District of Wyoming. Source: Eleanor Terrett


Custodia contended that without a master account, it would be unable to offer the same custodial services for crypto-assets as other banking institutions, placing the bank at a disadvantage.


“Without a master account, if Custodia is able to operate at all, it is a second-class citizen, relegated to dependency on and fealty to an intermediary bank,” it argued.


Furthermore, Skavdahl declared that Custodia is not entitled to have the Federal Reserve Bank of Kansas City (FRBKC) decision overturned:“Custodia is not entitled to its requested writ of mandamus compelling FRBKC to issue its master account, and summary judgment on Claim II must be granted in FRBKC’s favor.”


Related:Federal Reserve lists CBDCs as one of 7 ‘key duties’ to Congress


Custodia submitted an application for a Federal Reserve master account in October 2020. The application, if granted, would allow the bank access to the Fedwire network, which processed over 193 million transactions in 2023.


In January 2023, the Fed rejected Custodia’s membership application, citing its involvement in the crypto space as “inconsistent with the required factors under the law.”


Custodia was one of Wyoming’s first Special Purpose Depository Institutions (SPDIs), also known as “blockchain banks.” SPDIs were set up to help businesses that couldn’t secure Federal Deposit Insurance Corporation banking services due to their dealings with crypto.


Magazine:Creating ‘good’ AGI that won’t kill us all: Crypto’s Artificial Superintelligence Alliance# Banks# United States# Court# Digital Asset# RegulationAdd reactionAdd reaction

News Feed

Bitcoin Core dev receives grant for maintaining BIP repository
Ezra Reguerra11 hours agoBitcoin Core dev receives grant for maintaining BIP repositoryDeveloper Jon Atack believes that Bitcoin plays a role in human freedom, decentralization of power, privacy and self-sovereignty. 17
Marvel Comics Tells Freelance Artists Not to Mint Marvel-Brand NFTs, Publisher to ‘Introduce Opportunities for Creators’
Marvel Comics Tells Freelance Artists Not to Mint Marvel-Brand NFTs, Publisher to "Introduce Opportunities for Creators" Last March, the comic book publisher DC Comics told freelan
Spot Solana ETF might 9x the price of SOL — GSR Markets
Brayden Lindrea4 hours agoSpot Solana ETF might 9x the price of SOL — GSR MarketsThe crypto market maker’s forecast for Solana was based on a “blue sky” scenario, while its “bear” scenario only predicted a 1.
William Suberg7 hours agoBitcoin exchanges now hold the same BTC supply share as in late 2017BTC supply dynamics are pointing firmly in Bitcoin bulls’ favor, as an analyst says that “true price discovery” may come
Uniswap Foundation to Distribute $1.8 Million in Grants to 14 Recipients
Uniswap Foundation to Distribute $1.8 Million in Grants to 14 Recipients The Uniswap Foundation (UF), the group behind the decentralized exchange (dex) Uniswap, announced the first
IRS releases draft of 2025 digital asset reporting form for US taxpayers
Derek Andersen2 hours agoIRS releases draft of 2025 digital asset reporting form for US taxpayersThe U.S. Internal Revenue Service has been grappling with crypto tax reporting for years, and they may have a ways to go st
Dogecoin Hits Weekly Support Trendline, Analyst Signals Cycle Bottom Is In
Este artículo también está disponible en español. Recent price decline action has seen Dogecoin rebounding at a recent multi-month low after the entire market started las
Arijit Sarkar13 hours agoCrypto Twitter has a persistent ‘fake followers’ problem, data revealsShiba Inu had the greatest number of fake followers at 10.26% or 80,000 accounts, while Avalanche and Polygon followed su
South African Expert Says Tax-Dodging Crypto Traders Face Heightened Jail Threat
South African Expert Says Tax-Dodging Crypto Traders Face Heightened Jail Threat A South African tax expert, Thomas Lobban, has warned non-tax paying crypto trad
World’s first fully anonymous DAO created to ‘defend freedom’
Martin Young3 hours agoWorld’s first fully anonymous DAO created to ‘defend freedom’Everything about this DAO is designed to be completely anonymous and invisible on the blockchain, said Bitcoin OG Amir Taaki.1108
Study: Nigeria Most Crypto-Obsessed English Speaking Country Globally
Study: Nigeria Most Crypto-Obsessed English Speaking Country Globally A new study has ranked Nigeria as the country most curious about cryptocurrency post the April crypto market c
Cryptowisser : China Crypto Ban Sheds Light on Over 15 Countries That Restrict or Ban Cryptocurrency
Cryptowisser : China Crypto Ban Sheds Light on Over 15 Countries That Restrict or Ban Cryptocurrency press release PRESS RELEASE. October 2021, leading Crypto service comparison sit