2 years ago
The U.S. Federal Reserve announced connected Feb. 23 that it had denied a petition done which Custodia Bank sought supervision from the authorities agency.
Custodia asked the Federal Reserve to reconsider a akin rejection from past month. At that time, the slope sought to go a subordinate of the Federal Reserve system.
The Federal Reserve justified its archetypal rejection connected Jan. 27 by stating that Custodia does not person national deposit security and by highlighting the risks of its assorted cryptocurrency-focused activities. The authorities bureau said that Custodia’s application, arsenic primitively submitted, is “inconsistent with the required factors nether the law.”
Custodia Bank was formerly known arsenic Avanti. Caitlin Long, a erstwhile Wall Street enforcement with past roles astatine Credit Suisse and Morgan Stanley, is CEO and founder.
Custodia is notable for obtaining a charter successful Wyoming that allows it to run a special-purpose depository instauration and telephone itself a crypto bank. Crypto speech Kraken has besides obtained the aforesaid charter to run similarly.
Both companies person complained about national regularisation successful caller weeks.
The station Caitlin Long’s Custodia Bank receives 2nd rejection from Federal Reserve appeared archetypal connected CryptoSlate.
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