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Bank Custodia sues the Federal Reserve, claiming that the central bank has "illegally" delayed its request for a main account.
Specifically, the bank is pursuing the Kansas City Federal Reserve and the Board of Governors of the Federal Reserve. After submitting its business plans in May 2020, Custodia says the Kansas City Federal Reserve confirmed that its main account application was completed in October 2020. But once the main federal reserve got involved, the process stalled in the spring of 2021.
The prosecution asserts that the Fed is legally obligated to act within one year. Instead has delayed more than 19 months. According to the central bank's own documentation, it usually takes only five to seven days to process a principal account application. The lawsuit would force the Fed to act on the application, with the ideal resolution of approval.
It would make the bitcoin bank the first to receive such a qualification. That would make the Bitcoin bank the first to receive such a qualification.
Master account necessity
Founded by Morgan Stanley veteran Caitlin Long in 2020, Custodia was chartered in Wyoming under a crypto-friendly statute passed in 2019, which Long herself had helped compose.
The keeper has satisfied all the rules that apply to him, and took it one step further by applying to become a fed member bank." major report required by morgan stanley veteran caitlin long in 2020, custodia was chartered in wyoming under a crypto code introduced in 2019, that she herself had long helped write. The enterprise seeks to provide accounts for crypto enterprises by helping with payroll and taxes.
Unlike other banks, which primarily generate income by offering loans, custodia intends to do this by paying its services. Contrary to other banks, which mainly generate income by offering loans, Custodia intends to do so by charging fees for its services.However, to do this, the bank would need a primary account with the Fed.
Charge that a primary account is "vital" to its basic mission, it would "dramatically reduce its costs, and new products and options for financial service users. “The immediate injury is that the delay has forced Custodia to defer its solo entry into the financial services market.”
If approved, a pro-cryptocurrency bill recently revealed would prohibit Federal banking agencies from delaying applications under existing law and require them to decide on all applications within a year.
