Custodia Bank Sues Federal Reserve, Alleges Improper Rejection of Crypto-Focused Bank's Master Account
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Custodia Bank, founded by Caitlin Long, is suing the Federal Reserve, alleging the Fed conspired to deny Custodia a master account due to its crypto focus.
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New evidence shows the Fed's Board of Governors guided the Kansas City Fed to reject Custodia's master account application.
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Custodia argues it would have been approved if not for the Board's "meddling" following the FTX collapse.
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The Fed says crypto still poses risks, and rejected Custodia through proper channels.
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Crypto advocates see this as proof of "Operation Chokepoint 2.0", the alleged effort to cut off crypto's banking access.