Crypto Bank Custodia Sues FED Over ‘Master Account’ Delays
Crypto Bank Custodia Sues FED Over ‘Master Account’ Delays
Caitlin Long’s Bitcoin Bank Custodia filed a lawsuit against the Federal Reserve Board of Governors and the Federal Reserve Bank of Kansas City on May 7, accusing them of illegally delaying the bank’s application for a master account, which would allow it to function legally in the nation. Caitlin Long is also the founder of Avanti Financial Group, which, after Kraken, is the second crypto bank to be permitted to operate lawfully in the United States.
Custodia says that the FED is violating its own legal stipulations because the issuance of the document requested by the bank “ordinarily takes [five to seven] business days,” according to the lawsuit. They have, however, found ways to postpone its release.
Custodia was forced to wait 19 months for a document that any other bank could have received in less than a week, according to the lawsuit.
That’s why the Fed “clearly violated the [one]-year statutory deadline for doing so,” according to the bank. They even said that they had acquired the American Bankers Association’s (ABA) routing number, which is only granted to financial institutions that are allowed to create a master account.
Furthermore, Custodia says that the Fed is delaying his applications in the benefit of legacy financial institutions “whose interests are represented on the Kansas City Fed’s Board of Directors.”
This master account is critical to the bank because it would provide direct access to the Fed without the need for intermediate institutions, allowing the bank to streamline its operations by providing a safe bridge between digital assets and the US dollar payment system.
According to the lawsuit document, the Kansas City Fed knew of Custodia’s business plan months before it was submitted, and they never addressed any problems until 2021. When the Board took authority over the decision-making processes, it violated the one-year legal deadline for approval of the application.
Furthermore, Custodia stated that they are plainly authorized to have access to the FED under federal law, and that the same legislation prohibits the Board from discriminating against these organizations.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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Crypto Bank Custodia Sues FED Over ‘Master Account’ Delays
Crypto Bank Custodia Sues FED Over ‘Master Account’ Delays
Caitlin Long’s Bitcoin Bank Custodia filed a lawsuit against the Federal Reserve Board of Governors and the Federal Reserve Bank of Kansas City on May 7, accusing them of illegally delaying the bank’s application for a master account, which would allow it to function legally in the nation. Caitlin Long is also the founder of Avanti Financial Group, which, after Kraken, is the second crypto bank to be permitted to operate lawfully in the United States.
Custodia says that the FED is violating its own legal stipulations because the issuance of the document requested by the bank “ordinarily takes [five to seven] business days,” according to the lawsuit. They have, however, found ways to postpone its release.
Custodia was forced to wait 19 months for a document that any other bank could have received in less than a week, according to the lawsuit.
That’s why the Fed “clearly violated the [one]-year statutory deadline for doing so,” according to the bank. They even said that they had acquired the American Bankers Association’s (ABA) routing number, which is only granted to financial institutions that are allowed to create a master account.
Furthermore, Custodia says that the Fed is delaying his applications in the benefit of legacy financial institutions “whose interests are represented on the Kansas City Fed’s Board of Directors.”
This master account is critical to the bank because it would provide direct access to the Fed without the need for intermediate institutions, allowing the bank to streamline its operations by providing a safe bridge between digital assets and the US dollar payment system.
According to the lawsuit document, the Kansas City Fed knew of Custodia’s business plan months before it was submitted, and they never addressed any problems until 2021. When the Board took authority over the decision-making processes, it violated the one-year legal deadline for approval of the application.
Furthermore, Custodia stated that they are plainly authorized to have access to the FED under federal law, and that the same legislation prohibits the Board from discriminating against these organizations.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
Hazel
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