Wyoming Crypto Bank Has No Right to Key Fed Account, Judge Rules

Crypto firm Custodia Bank Inc. isn’t entitled to a coveted Federal Reserve account, a federal judge found, rejecting the Wyoming company’s allegations of unfair treatment.

Judge Scott W. Skavdahl of the US District Court for the District of Wyoming tossed Custodia’s bid to overturn a decision by the Fed and the Federal Reserve Bank of Kansas City denying the bank’s application for a master account. Such accounts give banks access to the Fed’s payment systems and other operations.

The Fed and its reserve banks aren’t required to give a master account to any bank just because it meets the legal ...