Cryptocurrency bank Custodia's application for Federal Reserve oversight is rejected again

ChainCatcher News: The U.S. Federal Reserve recently announced that it has again rejected the application of the crypto bank Custodia for Federal Reserve oversight after denying it last month.

A press release stated that the Federal Reserve Board voted against reconsidering Custodia's application. According to the voting record, this decision is consistent with last month's rejection of Custodia's application to become a member of the Federal Reserve System. In its initial rejection, the Federal Reserve stated that Custodia's business model "poses significant safety and soundness risks" and claimed that Custodia does not have an adequate risk management framework. (Source link)