Custodia, the Wyoming-based digital asset service provider, has expressed surprise and disappointment over the recent action by the Federal Reserve Board. Caitlin Long, chief executive officer of Custodia, said: “The Fed advised Custodia 72 hours ago that it could either withdraw its membership application or see it denied, and the Fed denied it in record time. Custodia offered a “safe, federally-regulated, solvent alternative to the reckless speculators and grifters of crypto that penetrated the U.S. banking system, with disastrous results for some banks”. Custodia actively sought federal regulation, going above and beyond all requirements that apply to traditional banks. The Board’s denial is “unfortunate but consistent” with the concerns that Custodia has raised about the Federal Reserve’s handling of its applications, an issue Custodia will continue to litigate.
