Fighting For Funny Money Freedom: Crypto Court Fight Connected To Kansas City Fed

Digital currency has kind of jumped the shark after so many people were wiped out by scammy crytpo-exchange losses.

Still . . .

The tech isn't going anywhere and there's an ongoing legal debate about how bigger institutions handle these investments.

Here's a local connection for our fellow finance news enthusiasts . . .

“Custodia will be unable to operate as designed and may have to cease all banking operations,” as a result of the Fed’s actions, according to an amended complaint filed in the federal district court for Wyoming.

The bank has been suing the Fed since June 7, 2022. It upped the stakes on Friday with an amended complaint that charged the central bank is “pulling the strings” of the theoretically independent Kansas City institution. The regional Federal Reserve branch denied Custodia’s application for a master account that would have allowed the bank to not have to go through a third-party bank to access wholesale payment systems and related Fed services.

“This case involves Defendants’ patently unlawful denial of an application critical to Custodia’s business—a master account—to which it is unequivocally entitled as an eligible depository institution,” according to the amended suit.

Read more via www.TonysKansasCity.com link . . .

Custodia Amps Up Suit Against Fed; Crypto Firm Says Central Bank Breaking Law

Custodia Bank is accusing the Federal Reserve Board of "patently unlawful" actions that will prevent the company from providing financial services to the digital-assets industry, part of a wider government crackdown on the cryptocurrency sector that has intensified in recent days.