Wyoming Crypto Bank Custodia Loses Appeal Over Fed Account (2)

A Wyoming bank that provides custody services for cryptocurrency companies isn’t entitled to access the Federal Reserve’s payment system, a federal appeals court ruled.

The Federal Reserve Bank of Kansas City had the authority to deny Custodia Bank’s application for a “master account” with the central bank, the US Court of Appeals for the Tenth Circuit said in a split ruling Friday.

The appellate panel also found that the Fed’s Board of Governors in Washington hadn’t unduly interfered in the Kansas City Fed’s decision.

“We conclude the plain language of the relevant statutes grants Federal Reserve Banks discretion to reject ...