In the midst of the current bull market news related to digital assets continue to emerge, namely recently a district court in the United States has rejected the application of the digital asset bank, join me to learn more about this event.
According to information disclosed by CIARAN Lyons to the Cointelegraph portal, "The U.S. district court has ruled against granting Custodia Bank a Federal Reserve master account and has also rejected the digital asset bank's request for a declaratory judgment."
It was also learned that, "without a master account, it would not be able to offer the same custody services for cryptoassets as other banking institutions, which would put the bank at a disadvantage," in this sense this decision is unfortunate for the market as it certainly creates an unfavorable scenario.
On the other hand, it is important to note that "Custody submitted an application for a Federal Reserve master account in October 2020. The application, if granted, would allow the bank access to the Fedwire network, which processed more than 193 million transactions last year."
Additionally it was also learned that, "In January 2023, the Fed rejected Custody's membership application, citing its participation in the crypto space as "inconsistent with factors required by law."
SOURCES CONSULTED
Cointelegraph. US court favors Fed in Custodia Bank case, rejects appeal for review. Link
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