Custodia Bank, a Wyoming-based crypto bank, has filed an appeal after a federal judge ruled against its bid for a master account with the Federal Reserve.
The judge affirmed the Fed's rejection, stating Custodia had not provided enough evidence to support its claims of illegal interference.
This legal battle began years ago when Custodia initially filed suit, alleging the Fed's delay in decision-making.
Judge Scott Skavdahl emphasised the importance of Fed discretion in rejecting Custodia's bid, warning against a potential "race to the bottom" among states if such discretion were eliminated.
Custodia is reviewing the ruling and has objected to the Fed's attempt to collect legal fees, citing ongoing litigation and potential chilling effects on future lawsuits against government entities.