Well, well, well, if it isn’t Custodia Bank, the crypto-friendly utopia dreamed up by Caitlin Long, being shot down again-this time by a US appellate court. Because, why not? Who doesn’t love a good underdog story… with a side of federal bureaucracy?
In a ruling that’s as surprising as a toaster refusing to toast your bread just the way you like it, the US Court of Appeals for the Tenth Circuit sided with the Federal Reserve. The decision? Well, it’s basically “no soup for you!” for Custodia’s appeal, which they filed in April 2024 after a Wyoming district court said, “No thanks” to giving them a US Federal Reserve master account. Oh, and by the way, this drama started in October 2020 when Custodia first submitted its application. It’s been a long wait.
Now, the court didn’t exactly call the case “the greatest thing since sliced bread,” but they did say something a bit… historical. “This case comes clothed in 21st Century terms: cryptocurrency, digital assets, instant wire transfers, and master accounts,” the judges noted. But, of course, they didn’t stop there. They reminded everyone that the central bank’s legality has been a hot topic since, you know, the Founding Fathers were deciding how to make their money… work.
Here’s the thing, folks. Had Custodia gotten the Fed master account, they would’ve been granted access to the US government’s ultra-exclusive payments network-a bit like getting VIP access to a concert… but for banks. Too bad the Fed wasn’t having it. They rejected the application in 2023, saying the bank’s focus on digital assets was a little too risky for their liking. That’s the kind of rejection you get when your focus is more on “blockchain” than “balance sheets.”
And before you say, “But didn’t Custodia file a lawsuit?” Oh, they did. They were all like, “Hey, the Fed is totally delaying our application unlawfully!” Which, to be fair, they may have a point there. But the court was just like, “Nah, not today, CryptoBank.”
What Are the Next Steps for Custodia?
Well, if you thought Custodia was just going to roll over and cry in the corner, think again. In a move that screams “we’re not done yet,” they’re considering petitioning the appellate court for a rehearing. The bank’s response to the ruling? Pure gold:
“While we were hoping for a win at the Tenth Circuit today, we received the next big thing – a strong dissent. It raised serious Constitutional questions about the Federal Reserve and was written by a judge sitting by designation on the panel of a similar case in the Ninth Circuit.”
Ah yes, a dissent. Because nothing says “we’re not done yet” like a passionate Constitutional debate on whether the Fed is a bit too… Fed-like for its own good.
Fun fact: Avanti, the precursor to Custodia, was one of the first “blockchain banks” created in Wyoming, which was basically like finding a crypto paradise under a state-level regulatory regime that seemed to get it. The company rebranded to Custodia in 2022. And just to keep things spicy, CryptoMoon reached out to Caitlin Long for comment but… as of publication, she’s still ghosting them. 😬
Read More
- Clayface DCU Movie Gets Exciting Update From Star
- SD Gundam G Generation Eternal global revenues have surpassed $200 million
- Rockstar Fans Pay Tribute To The Late D’Angelo, The Artist Behind RDR2’s Best Song
- Yakuza: Like a Dragon joins the PlayStation Plus Game Catalog next week on October 21
- The X-Files’ Secret Hannibal Lecter Connection Led to 1 of the Show’s Scariest Monsters Ever
- Is The White Lotus Breaking Up With Four Seasons?
- Dad breaks silence over viral Phillies confrontation with woman over baseball
- AI Animal Crossing Hack Turns The Villagers Against Tom Nook
- New Research Suggests US Gamers Buy Less New Titles Than You Might Think
- Avengers: Doomsday Rumor Addresses Tom Holland’s Spider-Man Status
2025-10-31 23:12