🔥Hot News! According to Fox Business, digital asset bank Custodia Bank has challenged the Federal Reserve's decision to deny it a master account and has filed a brief with the U.S. Court of Appeals for the Tenth Circuit. Custodia asked the court to revoke this decision and grant it a master account. 👩‍⚖️

Custodia's lawyers raised several key arguments. First, they believe 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 a state charter or a federal charter. 🏦

Second, they claim that the Fed's power to discriminate against state-chartered banks seeking to obtain master accounts may violate the Monetary Control Act. The Act allows state-chartered banks seeking to obtain Fed services to obtain fair access. ⚖️

Finally, they emphasized the word "shall" used by Congress in the Monetary Control Act to illustrate that Congress intended for all eligible banks to have equal access to the Fed's services. 🏛️

Custodia hopes to operate as an uninsured bank, issuing a stablecoin backed by cash and other assets. However, the Fed determined that the bank was not entitled to a master account at the Federal Reserve System and rejected its application to join the Federal Reserve System. This suggests that the Fed wants to isolate payment rails from crypto assets. 💰🚀

This incident has once again sparked discussions about blockchain and cryptocurrency regulation. Let's wait and see how this legal battle plays out. 👀