Wyoming crypto bank’s Federal Reserve application denied

By MEAD GRUVER
Associated Press

CHEYENNE, Wyo. (AP) — The Federal Reserve Board has denied a Wyoming cryptocurrency bank’s application for Federal Reserve System membership. The decision deals a setback to the crypto industry’s attempts to build acceptance in mainstream U.S. banking. Many in crypto were looking to Cheyenne-based Custodia Bank’s application as a bellwether. Approval would have meant access to Federal Reserve services including its electronic payments system. The denial announced Friday adds to doubts about crypto banking’s viability. The Federal Reserve Board says in a statement that the crypto bank would’ve been risky for depositors. Custodia CEO Caitlin Long denies that, saying in a statement that the application went “above and beyond all requirements.”