In a recent post on the X social media network, prominent investor Anthony Scaramucci opined that a recent anti-court decision made no sense. He said that it was “clearly a hostile attack” against the industry.
Earlier this week, Wyoming-based Custodia Bank faced a major setback, with Judge Scott Skavdahl, of the District of Wyoming, shooting down its motion for judgment.
The judge has ruled that the Federal Reserve is not obliged to grant the bank access to its master accounts.
Following the unfavorable ruling, Custodia Bank is now considering an appeal.
In its motion, Custodia Bank argued that the lack of access to the Fed’s master accounts would put it at a disadvantage compared to some competitors. However, this argument was not persuasive enough for the judge.
Those who do not have access to the Fed’s master have to rely on intermediaries.
The Wyoming-based bank filed its lawsuit back in 2022 after its master account access request was denied by the Fed.
However, as noted by reporter Fox Business Eleanor Terrett, the first option to dismiss contradicts the second one:
“The first opinion says that the rules that Congress laid out for the Fed cannot be interpreted as them giving complete and total authority to approve or deny Master Account applications. The second one says that the rules laid out by Congress confirm the Fed has the ultimate power to decide,” she wrote on X.
She further pointed out that perspective suggests limitations on the Fed’s discretion, but the other implies no limitations.
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