Custody, Caitlin Long’s cryptobank, is suing the U.S. Federal Reserve

The Wyoming-chartered digital digital technologies are these electronic tools that have the ability to generate, store or even process data. asset bank is suing the Fed for “violating deadlines” for responding to a master account application.

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• Earlier Avanti, the cryptobank sued the Fed for delaying its application.
• Custody is looking for a master account to grow its offering as a bank.
• It has +1 year waiting for an answer, when normally it is ruled in a week.

The cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. bank founded by the veteran of Wall Street Caitlin Long, Case is taking legal action against the U.S. Federal Reserve (Fed), alleging that the central bank has illegally delayed a master account application.

According to several media reports, the cryptobank filed a lawsuit contra la sucursal de la FED en Kansas City y la Junta de Gobernadores de la FED ante el Tribunal de Distrito de Wyoming. En la demanda, Case alleges that the headquarters of the central bank “ violated the legal deadline of 1 year “to issue a response on a request which is “ review “for your business.

Formerly called Avanti Bank Long’s cryptobank introduced the application for a master account in 2020. But since then, it has waited more than 18 months without getting a response; even when the branch of the FED said that the request for Case was complete and did not contain ” no obstacle “ according to the complaint.

FED violated the regular times

A master account of the Fed, as noted byThe Block a file containing information on transactions completed during a given time period. Blocks are the constituent parts of a blockchain., permite a las instituciones acceder directamente a los sistemas de pago del banco central de EE. UU. También permite el acceso más directo a la oferta monetaria del país. Los bancos que carecen de esta licencia a menudo se ven obligados a depender de terceros que sí posean cuenta maestra para brindar servicios.

Case who is licensed in Wyoming, noted in the lawsuit that he was seeking a master account for “ significantly reduce your costs ” y “ provide new products and options to users of financial services “, according toThe Block, which cited the document. “ Such an account an account is essentially a whose purpose is to track the financial activities of a specific asset/ would allow Custody custody is a financial institution's legal capacity to keep and preserve financial assets for its clients to avoid asset theft or loss. direct access to the Federal Reserve, rather than going through an intermediary bank. “.

The lawsuit asserts that the more than one-year timeframe is unusual, as the Fed’s own paperwork says a master account decision typically takes 5 to 7 business days. After arguing that there has been a breach in the timeline, it added that the delay was compounded in 2021, when the Fed’s board of governors stepped in and sought control of the decision-making process.

The cryptobank also accused the Fed of adopting procedures “ no standards “. Now he is looking for a “ speedy hearing “and a court order to compel the authority to provide a response within 30 days of the order.

There is a bureaucratic black box process with no clear rules or standards for processing applications, no clear lines of accountability or responsibility between the Board and the Kansas City Fed, and no clear end in sight to the saga of Custodial custodial cryptocurrency businesses are the ones that are in possession of their customers’ funds for the duration of the use of their services. applications.

Case espera por una respuesta

As you remember CoinDesk in February of this year, Case seemed to be getting closer to acquiring the long-awaited master account. when it received a routing number issued by the American Bankers Association (ABA), a step that media describe as key in the process of receiving such a license from the Fed.

Ante el retraso, y tras haber agotado todos los medios para obtener una decisión sobre su solicitud, Case has been forced to delay offering its services as an individual bank. Instead, it said in the lawsuit that it has partnered with a correspondent bank with a master account, which, it claims, is more costly and can lead to risks.

Article by Hannah Estefania Perez / DiarioBitcoin

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