Customia, a digital asset bank, was refused to sue the Federal Reserve for applying for a master account

It was reported that the Federal Reserve had previously rejected the application of Customia, a digital asset bank, to join the Federal Reserve System. Customia submitted a revised lawsuit to the Federal Reserve on Friday. According to the litigation documents, it is illegal to refuse his application. It is said that the Federal Reserve Board and the Biden government coordinated a series of public statements to cooperate with the refusal of Customia’s application. According to the lawsuit, the Federal Reserve rejected Custodia’s application for membership of the Federal Reserve system at the end of January, and Custodia’s main account application was rejected “immediately after”.

Interpretation of this information:

The news of the Federal Reserve’s rejection of Customia, a digital asset bank, to join the Federal Reserve System has recently surfaced. It was reported that the bank had submitted a revised lawsuit to the Federal Reserve, claiming that it is illegal to refuse its membership. The lawsuit also revealed that the Federal Reserve Board and the Biden government may have coordinated a series of public statements to support the rejection of Customia’s application.

According to reports, the rejection occurred at the end of January, and shortly after, Custodia’s main account application was rejected as well. The revised lawsuit filed by Custodia argues that the refusal of their application is illegal, and that they have the right to join the Federal Reserve System. Custodia is known for its secure custody solutions for digital assets.

The rejection of Custodia’s application raises questions about the criteria for banks and financial institutions to join the Federal Reserve System. It also highlights the challenges that digital asset banks face in gaining official recognition and approval from regulatory bodies.

The coordination between the Federal Reserve Board and the Biden government in support of the rejection of Custodia’s application also adds a political dimension to the issue. It raises concerns about the government’s influence on financial regulations and the potential for favoritism towards traditional banks over emerging digital asset banks.

In summary, the news of the Federal Reserve’s rejection of Custodia’s application to join the Federal Reserve System has raised many questions about the criteria for bank approvals, the challenges faced by digital asset banks, and the political influence on financial regulations.