- Crypto bridge Custodia Bank scored a huge triumph in its ongoing case against the Federal Reserve.
- The Wyoming judge denied the FED’s attempt to dismiss Custodia’s suit allowing the bank to proceed with plausible claims.
- Custodia is a new type of bank that aims to bridge the gap between crypto and the US dollar system.
In a recent ruling, crypto bank Custodia celebrated a significant triumph in its ongoing battle against the Federal Reserve, marking a pivotal moment in the institution’s legal fight.
On Thursday, a Wyoming Federal Judge issued a decision denying the Federal Reserve’s attempt to dismiss Custodia Bank’s lawsuit. This ruling has reignited Custodia’s optimism as it continues its legal challenge against the powerful financial institution.
Founded in 2020 by Caitlin Long, a former Morgan Stanley veteran, Custodia Bank was established with the aim of bridging the gap between digital assets and the US dollar system.
The lawsuit, filed by Custodia in June 2022, alleges that the Federal Reserve unlawfully delayed the bank’s application for a crucial component known as a “master account.” This master account is essential for Custodia to operate effectively within the U.S. financial system.
In January of this year, Custodia amended its complaint, seeking to determine whether the Federal Reserve possesses the authority to obstruct the bank from obtaining a master account.
Custodia holds the distinction of being one of Wyoming’s pioneer Special Purpose Depository Institutions (SPDIs), often referred to as “blockchain banks.” These SPDIs were established to cater to businesses involved in cryptocurrency transactions that face challenges in securing services from the Federal Deposit Insurance Corporation. Notably, in April, the state of Wyoming expressed its intent to intervene in the case between Custodia Bank and the Federal Reserve, actively defending its framework that allows certain crypto firms to qualify as state-chartered banks.
With the recent ruling denying the Federal Reserve’s bid to dismiss the lawsuit, Custodia Bank is now fortified in its pursuit of justice, eagerly awaiting the next phase of this critical legal showdown.
Read Also :
disclaimer read moreCrypto News Land, also abbreviated as "CNL", is an independent media entity - we are not affiliated with any company in the blockchain and cryptocurrency industry. We aim to provide fresh and relevant content that will help build up the crypto space since we believe in its potential to impact the world for the better. All of our news sources are credible and accurate as we know it, although we do not make any warranty as to the validity of their statements as well as their motive behind it. While we make sure to double-check the veracity of information from our sources, we do not make any assurances as to the timeliness and completeness of any information in our website as provided by our sources. Moreover, we disclaim any information on our website as investment or financial advice. We encourage all visitors to do your own research and consult with an expert in the relevant subject before making any investment or trading decision.
