Custodia Bank will take the case to the Supreme Court after the fall of March
Custodia Bank has filed a notice of appeal to the United States' Tenth Circuit, challenging the lower court's March ruling.
According to an April 26 court filing, the bank is seeking a federal appeals court review of Wyoming District Court Judge Scott Skavdahl's decision. The decision rejected Custodia's request for a Federal Reserve Master Account in the United States.
Federal Reserve accounts are accounts held directly with the Federal Reserve Bank by a financial institution. Having a master account allows banks to access Federal Reserve services such as Fedwire and the Automated Clearing House (ACH) network for electronic payments. In the year By 2022, Fedwire will have processed approximately 196 million transfers valued at more than $1 quadrillion.
Caitlin Long, a former executive at Morgan Stanley and an early proponent of Bitcoin, founded the bank in 2015. In 2020, it served as an account service for crypto firms and a bridge to the United States dollar.
Custodia applied for a Federal Reserve Master Account in October 2020. Almost two years later, in June 2022, the bank sued the Fed for “unlawful delay” in the application process.
In the year In 2023, the federation rejected the application for membership, citing that the bank's involvement in the crypto space was “inconsistent with the conditions required by law.” Most recently, on March 29, Judge Skavdahl denied the bank's motion for summary judgment against the bank.
Custodia Bank said the lack of master account has hindered it from providing custody services for digital assets like other banks. Several banks in the US, such as Bank of New York Mellon, own digital assets.
In a separate filing, the bank objects to a bill of costs filed by the Federal Reserve Bank of Kansas City. The bill seeks to recover $25,728.25 in deposition transcript costs. Custodia argues that these costs should not be awarded at this stage of the legal process.
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