Judge Says Denying Master Accounts Could Be a ‘Death Sentence’ for Banks

[mendez]

One judge issued a strong dissent after a federal court refused to hear Custodia Bank’s final appeal against the Federal Reserve.

Timothy Tymkovich argued that access to a Federal Reserve master account is “indispensable” for a bank’s operations.

He warned that denying one can be “akin to a death sentence,” since banks rely on direct access to the central bank’s payment infrastructure to function efficiently.

Tymkovich also noted that early communications from the Federal Reserve suggested Custodia’s application had “no showstoppers” before it was later rejected.

The dissent highlights the broader debate about how traditional banking infrastructure should treat emerging crypto-focused institutions.

[cryptoenthusiast]

fr tho imagine being Custodia and the Fed basically ghosting u after saying “no showstoppers”