Tenth Circuit Rejects Custodia Bank Bid to Revive Federal Reserve Case
The U.S. Tenth Circuit voted 7-3 to deny Custodia Bank’s rehearing request, preserving a ruling that the Federal Reserve has authority to approve or reject master account applications.
Fact Check
The statement is fully supported by multiple reputable financial and crypto news outlets. On March 13, 2026, the U.S. Court of Appeals for the Tenth Circuit indeed voted 7-3 to deny Custodia Bank's petition for an en banc rehearing. This decision maintains the lower court's ruling that Federal Reserve Banks possess the discretion to grant or deny master account applications, a central point of contention in Custodia's multi-year legal battle.
Summary
The U.S. Court of Appeals for the 10th Circuit rejected Custodia Bank’s bid for a rehearing by a 7-3 vote, leaving in place a 2025 panel ruling that the Federal Reserve can approve or deny master account applications. Custodia, founded by Caitlin Long, applied for a master account in October 2020 and was denied by the Federal Reserve Bank of Kansas City in January 2023 because of risks tied to its crypto business model. The decision is the latest setback in Custodia’s long-running effort to gain direct access to the Federal Reserve’s payment system.
Terms & Concepts
- master account: An account at the Federal Reserve that can give an eligible institution direct access to central bank payment services and settlement infrastructure.
- Federal Reserve: The U.S. central banking system, made up of the Board of Governors and regional Reserve Banks, which oversees monetary policy and key payment functions.