Crypto bank weighs appeal after surprise denial of Federal Reserve account

Custodia Bank, a Wyoming crypto bank, is considering appealing a judge's decision denying it access to Federal Reserve banking services. Custodia believes the decision was politically motivated.

Supporters like former Senator Pat Toomey argue Custodia has grounds to appeal based on what they see as a contradictory and inexplicable reversal by the judge.

The Fed has historically denied some state banks master accounts due to crypto or marijuana industry affiliations, prompting accusations of overreach.

Custodia hoped a judge would force the Fed to grant it an account, citing reasonable arguments it qualifies for relief under the Mandamus Act.

The judge's surprise ruling contradicted his earlier skepticism of the Fed’s discretion and the lengthy delays in processing Custodia’s application.