Caitlin Long’s Custodia Bank receives second rejection from Federal Reserve
announced by the US Federal Reserve February 23rd Custodia Bank said it had refused a government agency’s request for oversight.
Custodia has asked the Federal Reserve to reconsider a similar refusal last month. At the time, the bank was aiming to become a member of the Federal Reserve.
The Federal Reserve justified its initial denial on Jan. 27 by stating that Custodia does not have federal deposit insurance and highlighting the risks of various crypto-focused activities. bottom. The agency said the custodian application originally filed was “inconsistent with the elements required under the law.”
Custodia Bank was formerly known as Avanti. Caitlin Long, a former Wall Street executive who has held past positions at Credit Suisse and Morgan Stanley, is CEO and founder.
Custodia famously obtained a charter allowing it to operate a special purpose depository institution in Wyoming and call itself a cryptocurrency bank. Cryptocurrency exchange Kraken has obtained the same charter to operate as well.
Both companies have complained about federal regulations in recent weeks.
