Odaily Planet Daily News According to information shared by Fox Business reporter Eleanor Terrett on X, digital asset bank Custodia Bank has submitted a brief to the United States Court of Appeals for the Tenth Circuit, questioning the Wyoming judge's decision 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. Here are some of the key points of their argument: 1. Custodia's lawyers claim that the Fed's power to deny state-chartered banks the power to open master accounts undermines the dual banking system, which allows banks to freely choose whether to operate under state or federal charters; 2. They also claim that the Fed's power to discriminate against state-chartered banks seeking to obtain master accounts may violate the Monetary Control Act, which allows state-chartered banks seeking to obtain Fed services to obtain fair access; 3. They emphasized the word "shall" used by Congress in the Monetary Control Act and wrote that "all Federal Reserve bank services...should be open to non-member depository institutions" to illustrate that Congress intends for all eligible banks to have equal access to the Fed's services. Earlier in early May, Custodia wanted to operate as an uninsured bank and issue a stablecoin backed by cash and other assets. However, the Fed determined that the bank had no right to obtain the Federal Reserve System's master account and rejected its application to join the Federal Reserve System, indicating that the Fed wants to isolate the payment track from crypto assets. It is reported that a Federal Reserve account allows the holder to transfer reserves directly to another financial institution without the need for another intermediary.
