Feb 24, 2023
Fed Denies Custodia Bank Membership Application, Lawsuit Continues
The United States Federal Reserve has officially declined to reconsider Custodia Bank’s application to become a member of the Federal Reserve System. This news comes after a district court allowed a lawsuit between the two parties to proceed.
The Fed previously rejected Custodia’s application in January of this year, citing an “insufficient” management framework and a joint declaration made with the Federal Deposit Insurance Corporation and Office of the Comptroller of the Currency that cryptocurrencies are “inconsistent with safe and sound banking practices.”
Custodia, which applied for membership four years ago in 2019, had hoped to be regulated under the same standards as traditional banks. The crypto-bank’s spokesperson, Nathan Miller, stated that the lawsuit “zeroes in on the core legal issue: whether Congress even granted the Fed discretion to decide master accounts at all.”
On February 22, a Wyoming District Court judge denied the Fed’s motion to dismiss the lawsuit. The lawsuit was filed by Custodia in response to the Fed’s more-than-two-year delay in granting the crypto-bank a master account. A master account would allow Custodia to access Federal Reserve payment systems without using a third-party bank.
The judge has ordered Custodia to file its first amended complaint to the court by March 1.
The NFT Craze and Web3 Agency
The latest news from the Federal Reserve comes as the Non-Fungible Token (NFT) market continues to boom. NFTs are digital assets that are stored on a blockchain and are unique, non-interchangeable and non-divisible. NFTs are being used to promote and sell digital art, music, and other digital assets.
As the NFT market grows, so too does the need for NFT marketing. Companies are turning to web3 agencies to help them promote their NFTs and increase their digital asset sales. These agencies specialize in NFT promotion and offer services such as Twitter NFT marketing, NFT marketing campaigns, and NFT marketing strategies.
These agencies are also helping companies to sell their NFTs. By using a web3 agency, companies can increase their NFT sales, as well as their visibility in the NFT market. As the NFT market continues to grow, web3 agencies are becoming an increasingly important part of the NFT space.
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