US court rejects Fed’s motion to dismiss Custodia Bank case

Custodia Bank took an action forward in its legal fight against the Federal Reserve, as a Wyoming federal judge denied termination movements from both the Fed and the Federal Reserve Bank of Kansas City.The digital property bank took legal action against the Federal Reserve in June 2022, claiming an “unlawful hold-up” in processing an application for its master account. We are happy that the Feds effort to provide itself a veto over state bank chartering choices will now be checked in federal court,” Nathan Miller, a representative for Custodia Bank, told Cointelegraph in a statement.Screenshot of the Order on Defendants Motions to Dismiss Amended Complaint. In April, the state of Wyoming requested to intervene in the case between the bank and the Fed, protecting its structure allowing specific crypto companies to qualify as state-chartered banks.According to Miller, the Fed is reinterpreting federal laws to give itself special authority that it never ever received from Congress after years of immediately giving master accounts to chartered banks.