Custodia Bank has enlisted the expertise of two seasoned solicitors to represent its case against the US Federal Reserve, as reported by Politico on May 26. CEO Caitlin Long confirmed the appointment, highlighting the solicitors' extensive background in federalism issues and regulation of the crypto industry. She commended their impressive track record in handling government controversies, particularly in appellate courts.

The solicitors hired by Custodia are Ian Gershengorn, formerly serving as the Principal Deputy Solicitor General of the US under President Barack Obama, and Michelle Kallen, who held the position of Solicitor General of Virginia. Both legal experts are affiliated with the law firm Jenner & Block LLP. Fox Business reporter Eleanor Terrett noted their significant achievements, citing their successful records in the US Supreme Court and Courts of Appeal.

Custodia is expected to formally announce the appearance of its legal representation shortly. The company's decision to appeal stems from a lawsuit filed in 2022 against the Federal Reserve’s Board of Governors and the Federal Reserve Bank of Kansas City (FRBKC). The lawsuit alleges that the Federal Reserve entities denied Custodia a Federal Reserve master account, which is essential for financial institutions to conduct transactions directly with the Federal Reserve, bypassing intermediary banks.

In March, the court ruled against Custodia, stating that the company had no statutory entitlement to a master account due to the absence of an agency decision from the Board of Governors. Custodia subsequently filed a notice of appeal in April. Access to a master account facilitates smoother fiat-crypto transactions, a sector of increasing importance in today's financial landscape. This legal battle is distinct from Custodia Bank’s prior attempt to become a member of the Federal Reserve, which was denied in January 2023.