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US Appeals Court Upholds Fed’s Denial of Master Account to Crypto Bank Custodia
US Appeals Court Upholds Fed’s Denial of Master Account to Crypto Bank Custodia
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BTCCSquare news:
A federal appeals court has ruled in favor of the Federal Reserve's decision to deny Custodia Bank, a Wyoming-based institution focused on cryptocurrency, access to a master account. The Tenth Circuit Court of Appeals affirmed that the Fed retains discretion to reject such requests to protect financial stability, dealing a significant setback to Custodia's efforts to integrate directly with the central banking system.
Judge David Ebel emphasized that eligibility does not equate to entitlement, reinforcing the Fed's authority to safeguard the financial system. The ruling maintains barriers for crypto-native banks seeking direct access to Fed payment rails, underscoring ongoing regulatory hesitance toward digital asset integration.
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