At a time when regulators are scrutinizing the crypto industry like never before, digital assets bank Custodia hoped the U.S. government would welcome its compliance-first business strategy. The central bank saw it differently, however, and rejected the Wyoming-based bank's application for membership in the Federal Reserve System.
“The firm's novel business model and proposed focus on crypto-assets presented significant safety and soundness risks,” said the Federal Reserve in a press release.
