Custodia's lawsuit claims that the bank's approval process for a master account with the Federal Reserve, which would reduce costs and risks, was delayed in an "unlawful" manner. Now, Caitlin Long's Bitcoin bank Custodia is suing the Federal Reserve.
As per a Forbes article, Custodia, the bitcoin bank previously recognized as Avanti, is suing the Federal Reserve for "patently unlawful" delays in the bank's request to become a "Master Account" underneath the central bank.
"For more than 19 months, Defendants [The Federal Reserve] have refused to act upon Custodia’s application for a master account with the Federal Reserve," the lawsuit (read below) claims.
The Wyoming-chartered bank was recognized as a special purpose depository institution (SPDI) on October 28, 2020, which implies it may handle both conventional banking and bitcoin operations. Custodia also filed their master account application the next day.
"The delay also breaches the schedule contained on the ...