The US Federal Reserve denies Custodia Bank’s request for a review of Fed supervision

(Reuters) – The Federal Reserve on Thursday rejected a request from crypto-focused Custodia Bank that the central bank reconsider its application for membership in the Federal Reserve System.

The Fed previously said that Custodia, which is based in Wyoming and chartered by the state as a specialty custody institution, lacks an adequate risk management framework to handle the increased risks associated with crypto.

(Reporting by Hannah Lang in Washington; Editing by Chris Reese)