Following the rejection of its application to open a master account with the US Federal Reserve, Custodia Bank has taken legal action against the regulator, claiming that it has been discriminated against and unfairly denied access to full membership of the US Federal Reserve System.
Custodia Bank CEO Caitlin Long has vowed to continue fighting for the right to open a master account, which would enable the crypto bank to conduct direct transactions with other credit institutions using the reserves of the Central Bank.
The bank has accused the Fed of inconsistency and bias, and has filed a new lawsuit demanding that the regulator change its decision.
According to Custodia Bank, the Fed’s actions violate legal requirements and are a breach of the bank’s rights.
Custodia spokesman Nathan Miller has stated that the bank will continue to defend its interests in court and push for a legal assessment of the Federal Reserve’s actions. In January, the bank’s initial application was rejected by the US Federal Reserve Board, prompting Custodia Bank to take legal action against the Board of Governors and the Federal Reserve Bank of Kansas City.