According to Foresight News, Fox Business reporter Eleanor Terrett reported that crypto-friendly bank Custodia has filed an opening statement with the U.S. Court of Appeals for the Tenth Circuit, requesting the court to instruct the Wyoming District Court to revoke the rejection of Custodia's master account application and grant it an account. Custodia's lawyers said that the Federal Reserve's power to refuse to provide master accounts to state-chartered banks undermines the dual banking system, which allows banks to freely choose whether to conduct business under a state charter or a federal charter. The Federal Reserve's power to discriminate against state-chartered banks seeking to obtain master accounts may violate the Monetary Control Act.
Foresight News previously reported that a federal judge in Wyoming rejected the Federal Reserve's request to dismiss the lawsuit filed by digital asset bank Custodia Bank against it in June 2023. Custodia had applied for a master account at the Federal Reserve Bank of Kansas City, but was rejected by the Federal Reserve many times.
