Fed spurns Custodia a second time

The US Federal Reserve Board announced that it had rejected a second bid by Wyoming crypto firm Custodia to become a Federal Reserve member bank.

In a brief statement issued on February 23, the Fed said the “application as submitted was inconsistent with the required factors under the law”.

The board had previously denied Custodia’s application for membership last month, saying its “novel business model and proposed focus on crypto assets presented significant safety and soundness risks”