Bitcoin Bank Custodia has recently filed a lawsuit against the Federal Reserve Board of Governors and the Federal Reserve City.
Custodia files lawsuit against FED
The Custodia said that the central bank was unlawfully delaying its decision on the crypto bank’s application to open a master account that would allow it to operate legally in the United States.
Custodia said that the direct access to the Federal Reserve is “vital to Custodia’s ability to operate effectively and efficiently in pursuit of its core mission to offer a secure, compliant bridge between digital assets and the United States dollar payment system.” It added:
“Custodia has devoted years of effort by a number of skilled professionals and substantial resources to preparing its business, including by undergoing intense review and satisfying stringent regulatory requirements imposed by its chartering state of Wyoming, a nationwide leader in developing charters tailored for banking in the digital asset industry.”
Caitlin Long, who owns the Bitcoin Bank Custodian, is also the founder of the second bank to operate in the country legally besides Kraken, Avanti Financial Group.
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. However, they have found means to postpone its release.
The lawsuit revealed that there had been a delay of 19 months in a decision which any other bank could have gotten approval within a week. This leads to Custodia believing that the FED is clearly violating the one-year statuary deadline to do so.
Custodia, which was initially known as Avanti Bank, got a routing number from the American Bankers Association (ABA) in February, indicating that it was getting closer to obtaining the master account.
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