Historic bank runs in the last two weeks underscore the dire need for fully solvent banks that are equipped to serve fast-changing industries in an era of rapidly improving technology. That is the exact model proposed by Custodia Bank – to hold $1.08 in cash to back every dollar deposited by customers. Unfortunately, the Federal Reserve took its eye off the ball and allowed bank-run risks to build at traditional banks – while simultaneously engaging in a crackdown against the digital asset industry at large and Custodia Bank in particular. Custodia Bank was approved for initial launch by both its primary bank regulator and an independent compliance consultant last Fall, but the Fed and the Kansas City Reserve Bank refused to follow the law, leaving Custodia no choice but to sue. Custodia has not been intimidated by the Fed’s coordinated attacks and behind-the-scenes press leaks of confidential Custodia information. The recently released Fed order is the result of numerous procedural abnormalities, factual inaccuracies that the Fed refused to correct, and general bias against digital assets. Rather than choosing to work with a bank utilizing a low-risk, fully-reserved business model, the Fed instead demonstrated its shortsightedness and inability to adapt to changing markets. Perhaps more attention to areas of real risk would have prevented the bank closures that Custodia was created to avoid. It is a shame that Custodia must turn to the courts to vindicate its rights and compel the Fed to comply with the law.