Custodia’s Amended Suit Questions Fed’s Application Denial Timing

Custodia Bank, a Wyoming-based cryptocurrency bank, amended its lawsuit against the Federal Reserve to allege that Fed officials collaborated with other regulators and the White House to deny its application for a key Fed account.

In January, the Fed and the Federal Reserve Bank of Kansas City denied Custodia’s applications to be a member of the Federal Reserve System and for a master account.

The denials were part of a broad campaign by federal regulators to keep state banks from engaging in cryptocurrency activities, Custodia alleged in the amended complaint filed Friday in the US District Court for the District ...