Key Points:Custodia Bank (a cryptocurrency bank) has been denied membership in the United States Federal Reserve System.
Custodia expressed a desire for the Federal Reserve System’s regulation to be the same as traditional banks. They hope to set an example for other crypto-banks and hold them to the same high standards.
As long as Custodia’s district court allows it, the lawsuit against the Federal Reserve will continue.
Custodia Bank, which is a cryptocurrency bank has been refused membership to the United States Federal Reserve System. Custodia’s January 2023 application was rejected by the Fed. The Fed cited an “insufficient” management structure and has denied their request to reconsider. Custodia claimed that Custodia’s application was not consistent with the requirements of the law. In a joint declaration with the Federal Deposit Insurance Corporation (OFC) and Office of the Comptroller of the Currency the Fed stated that cryptocurrencies were “inconsistent” with safe and sound banking practices. Custodia expressed a desire for the Federal Reserve System to be regulated according to the same standards as traditional banks. Custodia hopes to set an example for other crypto-banks and have them held to the same high standards. Custodia sued the Federal Reserve for denial of their application to join the Federal Reserve System. This lawsuit will have major implications for cryptocurrency banking and its relationship to traditional banking systems. We encourage you to do your research before investing.Join us to keep track of news: https://linktr.ee/coincuAnnieCoincu NewsTags: Custodia BankFed SupervisionFederal Reserveus