Kirsten Gillibrand Cynthia Lummis New York state Wyoming Provident Digital FIVE Citi Williams Kirsten Gillibrand Cynthia Lummis New York state Wyoming

This Crypto-Friendly Bank is Suing the Fed and Why a Win Would Be Hugely Price-Positive for Digital Assets

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U.S. digital asset-focused bank Custodia has filed a lawsuit against the Federal Reserve (FED) Board of Governors and the Federal Reserve Bank of Kansas City over “unlawfully” delaying its application for a master account with the FED.

The bank received major backing earlier this week after seven U.S. Congressmen submitted a friend of the court brief. The lawmakers urged a Wyoming court to dismiss the FED’s motion to dismiss the lawsuit.The brief was filed by three Republican senators, including Cynthia Lummis, Steve Daines and Kevin Cramer, and four GOP members of the House of Representatives, including Warren Davidson, Ted Budd, Trey Hollingsworth, and William Timmons.

A similar document has also been submitted by the state of Wyoming, Yahoo! Finance reported.“For more than 19 months, Defendants have refused to act upon Custodia's application for a master account with the Federal Reserve," the company said in its lawsuit.The bank says the sued institutions violated the one-year statutory deadline for processing its application.

They also breached the schedule contained on the master account paperwork which says that such a decision should take five to seven business days.

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