Custodia Bank filed a new lawsuit against the Fed for refusing to open a master account

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After the US Federal Reserve rejected Custodia Bank's application to open a master account, the crypto bank filed a new lawsuit against the Fed and demands that the regulator change its decision.

Custodia Bank CEO CaitlinLong said that the crypto bank will continue its fight for the right to open a master account for a financial institution, which will allow it to become a full member of the US Federal Reserve System (FRS). The head of Custodia accused the regulator of inconsistency and bias towards the crypto bank.

“Satisfaction of Custodia’s application to open“master accounts are not a whim, but a duty of the defendant [the Fed], who should not discriminate against Custodia in its ability to access all banking services using this account,” the new statement of claim states.

In a press statement, the officialCustodia spokesman Nathan Miller said that the crypto bank will continue to defend its interests in court, and will also insist on a legal assessment of the actions of the Federal Reserve System and the Federal Reserve Bank of Kansas City.

He explained that the Federal Reserve Charter stipulatesprovision “on the availability of the regulator’s services for all depository institutions of the country that are not its members.” Thus, according to Custodia Bank, the regulators deliberately violated the applicant’s legal requirements without having sufficient authority to do so.

Let us remind you that in January Custodia Bank’s application forThe opening of a master account, which could give a financial institution the opportunity to conduct direct transactions with other credit institutions through Central Bank reserves, was rejected by the US Federal Reserve Board. Long previously sued the Federal Reserve Board of Governors and the Federal Reserve Bank of Kansas City for delays in processing the application.