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

Custodia Bank won a step forward in its legal battle against the Federal Reserve, as a Wyoming federal judge rejected termination movements from both the Fed and the Federal Reserve Bank of Kansas City.The digital property bank sued the Federal Reserve in June 2022, claiming an “illegal hold-up” in processing an application for its master account. We are delighted that the Feds effort to supply itself a veto over state bank chartering decisions will now be tested in federal court,” Nathan Miller, a representative for Custodia Bank, informed 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 in between the bank and the Fed, defending its structure permitting specific crypto firms to certify as state-chartered banks.According to Miller, the Fed is reinterpreting federal laws to approve itself unique authority that it never got from Congress after decades of instantly giving master accounts to chartered banks.