A federal appeals court in Denver, USA, rejected a lawsuit filed by cryptocurrency bank Custodia seeking a “master account” from the Fed, upholding a lower court's 0 decision stated that while Custodia is technically a qualifying bank, the Fed has discretionary authority to grant such 1 also recently called for cryptocurrency companies to be able to obtain master 2 three-judge panel emphasized that Custodia had failed to gain access to the Fed's 3 court stated that the Fed could deny this privilege in cases where it could compromise the security of the banking 4 Fed's Kansas City branch had concluded that Custodia's crypto-focused business model posed “excessive risk” to the US banking 5 News: Danger of a “Golden Pocket” in Solana: Analysis Firm Says, “It Shouldn't Fall to This Level” Master accounts give all federal banks direct access to the Fed's payment system and nationwide operations.
However, no crypto-focused bank has been granted this access to 6 currently operates under a special purpose depository institution (SPDI) license from the state of 7 court's two-to-one decision was issued by a panel of judges, most of whom were appointed by Republican 8 David Ebel, appointed by former President Ronald Reagan, penned the 9 stated, “The clear language of the relevant statutes grants the Federal Reserve Banks the discretion to deny master account access to eligible institutions.” The sole judge to dissent, Timothy Tymkovich (appointed by George W. Bush), argued that the Fed's payment services should be available to all non-member banks that are “eligible.” While Custodia's legal battle was unsuccessful, the Fed's stance on crypto could shift in the coming 10 Chairman Jerome Powell's term ending, Fed governors closer to the White House are expected to ease the central bank's anti-crypto policies. *This is not investment 11 Reading: Bad News for the Cryptocurrency World from the Federal Court: Especially Relevant for Ripple
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