Summary
TLDR: Custodia Bank lost its bid for a Federal Reserve master account, facing legal setback. Court ruling dismissed claims of undue influence and lack of authority. Decision adds to challenges in crypto market, with industry giants also facing legal hurdles. Custodia may appeal, Senator Cynthia Lummis disagrees with ruling.
Key Points
1. Custodia Bank lost its bid for a Federal Reserve master account following a court ruling against it, delivering a blow to the crypto market.
2. The Wyoming-based Custodia filed a lawsuit against the Federal Reserve, citing delays in processing its application for a master account, but the judge disagreed with Custodia’s assertions.
3. Despite the setback, Custodia hinted at appealing the judgment, while US Senator Cynthia Lummis voiced her disagreement with the ruling and urged the Federal Reserve to adhere to established laws.