According to Odaily Planet Daily, digital asset bank Custodia Bank has submitted a brief to the United States Court of Appeals for the Tenth Circuit, questioning the decision of a Wyoming judge to grant the Federal Reserve unfettered power to reject its master account. Custodia asked the Court of Appeals to instruct the Wyoming District Court to revoke the rejection of Custodia's application for a master account and grant it a master account. Custodia CEO Caitlin Long hired two senior Supreme Court lawyers to defend her company.
Their main points of contention included: that the Fed's denial of the power to open master accounts to state-chartered banks undermined the dual banking system; that the Fed may have violated the fair access principle in the Monetary Control Act; and that Congress's use of the word "shall" in the Monetary Control Act meant that all eligible banks should have equal access to the Fed's services.
Previously, Custodia wanted to operate as an uninsured bank and issue a stablecoin backed by cash and other assets. However, the Federal Reserve determined that the bank was not entitled to the main account of the Federal Reserve System and rejected its application to join the Federal Reserve System.