Crypto Bank Custodia Suffers Another Court Rejection in Fed Master Account Pursuit

Crypto Bank Custodia faced another setback in its quest for a Federal Reserve master account, as the 10th Circuit Court of Appeals ruled against it. This decision comes nearly nine months after the court heard arguments in the case. Custodia had originally sued the Federal Reserve in 2022 after its near application was rejected, claiming that the Fed was not required to deny every eligible depository institution a master account. The court concluded that Federal Reserve Banks have the discretion to reject such requests, emphasizing that the ruling was aimed at safeguarding the financial system.

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