Custodia Bank will appeal the
The Cheyenne-based digital asset bank submitted a notice to the 10th Circuit Court of Appeals on Friday that it would
Custodia
Skavdahl ruled that, contrary to Custodia's argument, the reserve bank had discretion to deny the bank a so-called master account, which would have provided the state-chartered special purpose depository access to the federal payments system.
He also dismissed a complaint that the Federal Reserve Board of Governors violated the Administrative Procedure Act through its involvement in the decision making process.
Custodia was one of three firms challenging the Fed's master account granting practices, along with
Custodia's notice of appeal is the first step in a formal appeal, which many legal analysts have expected since Skavdahl's decision was released.
This will be the second time the 10th Circuit has been asked to weigh in on a master account dispute, with the first coming in 2017 from
The Fourth Corner case has been cited by Custodia and others in lawsuits against the Fed regarding master account access, because one judge on the panel wrote in his opinion that the Fed was obligated to grant accounts to nonmember banks. But the decision was not controlling, meaning it does not set an official precedent in the circuit.
Custodia also filed a motion with the District Court in Wyoming objecting to the Kansas City Fed's effort to recoup more than $25,000 in costs from the bank related to the lawsuit.
The reserve bank submitted an itemized bill of costs to the court, requesting that Custodia reimburse it for expenses related to deposition transcription.
In its filing, Custodia referred to its case against the Fed as a "David versus Goliath lawsuit," arguing that if the court forces it to cover the reserve bank's costs, it would "risk chilling future legitimate lawsuits challenging the administrative actions of governmental and quasi-governmental entities."
