Crypto banking, custody, and payment solutions company Custodia, founded by a 22-year Wall Street expert Caitlin Long, submitted a complaint against the US Fed. The company says Fed was illegitimately postponing a response on its master account request.
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Custodia's filing to the US District Court of Wyoming accuses the Central Bank Board of Governors and Kansas City Fed of putting off the request process by 19 months. The document says the master account is essential for Custodia’ business. With it, the company would have direct access to Fed instead of going via a third party bank. This will help reduce costs and launch new products. The company noted in the filing that it is legally eligible and has met all the requirements to be granted access.
Custodia finds that the Bank's behavior suggests that the institution conducts standardless processes which is shown in secrecy of agencies of the federal government to act without accountability or rules to govern their decision-making. The company added continued delay in current circumstances prevents the business and other newcomers from introducing innovation and competition in the financial services marketplace.