The post US Appeals Court Rejects Custodia Bank’s Fed Account Bid in Major Blow to Crypto Bank appeared on BitcoinEthereumNews.com.

Key Takeaways: A federal appeals court ordered no hearing regarding a complaint by Custodia Bank against the challenge of the Fed on that refusal to open a master account. The ruling effectively ends the crypto-focused bank’s multi-year effort to gain direct access to the Fed’s payment system. A dissenting judge argued that denying a master account can severely limit a bank’s ability to operate. A U.S. federal appeals court has declined to reconsider the legal challenge of Custodia Bank against the Federal Reserve, hence closing this crypto-focused bank effort to take the direct access to payment system of the central bank This decision maintains the earlier rulings intact and strengthens the power of the Federal Reserve to decide whether financial institutions receive master accounts. Court Rejects Custodia’s Request for Rehearing The U.S. Court of Appeals for the Tenth Circuit denied Custodia Bank’s petition for an en banc rehearing, meaning the case will not be reconsidered by the court’s full panel of judges. Custodia had asked the court to review prior decisions that sided with the Federal Reserve and the Federal Reserve Bank of Kansas City. The bank argued that federal law requires Reserve Bank services to be available to eligible institutions and that access should include the master accounts needed to use those services. After circulating the petition among active judges, the court held a vote but failed to reach the majority needed to reopen the case. As a result, the petition was formally denied. This outcome effectively ends Custodia’s legal effort to challenge the rejection of its master account application. Read More: SEC Seeks $10M Settlement in Justin Sun Case as Claims Against TRON Founder Get Dropped Custodia’s Push for Direct Fed Access Custodia Bank is a Wyoming-chartered Special Purpose Depository Institution (SPDI) designed to provide banking services to…

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Filed under: News - @ March 14, 2026 4:51 pm