Fed says Crypto Bank cannot sue over account decision

By Jon Hill (August 17, 2022, 9:39 PM EDT) – Federal Reserve System officials are urging a federal judge in Wyoming to dismiss a lawsuit from a cryptocurrency bank they say is seeking to rush to grant him access to key central bank services before he can finish mulling over all the wider ramifications of his request.

In briefs filed Tuesday evening, the Federal Reserve Board of Governors and its Kansas City Regional Reserve Bank argued that U.S. District Judge Scott W. Skavdahl should dismiss a lawsuit filed by Custodia Bank Inc. that accuses them of of “unreasonably” withholding the stock over its application for a so-called Fed Main Account.

Custodia, an uninsured…

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