US Federal Reserve denies Custodia Bank's request for Fed supervision

The United States Federal Reserve has denied a petition from cryptocurrency slope Custodia Bank to reconsider its rank exertion to the Federal Reserve System.

The Fed announced its denial connected Feb. 23 saying the Federal Reserve Board antecedently decided that Custodia’s exertion “was inconsistent with the required factors nether the law.”

@federalreserve announces it has denied the petition by Custodia Bank, Inc., for reconsideration of the Board’s determination past period connected its exertion to beryllium supervised by the Federal Reserve: https://t.co/ZYNUEoLeN1

In January, the Fed rejected Custodia’s application to go a member. Board rules let applicants to petition a reconsideration of rank decisions.

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At the clip of the archetypal rejection, the Fed claimed Custodia had an “insufficient” absorption framework.

It besides cited a joint declaration it made alongside the Federal Deposit Insurance Corporation (FDIC) and Office of the Comptroller of the Currency (OCC) that claimed cryptocurrencies were “inconsistent with harmless and dependable banking practices.”