Tenth Circuit Upholds Federal Reserve's Discretion Over Master Accounts for Crypto Banks
Here's what it means for you.
The ruling reinforces the regulatory landscape for cryptocurrency banks, impacting access to essential banking services.
What happened
On March 13, 2026, the U.S. Tenth Circuit denied Custodia Bank's petition for rehearing, affirming the Federal Reserve's discretion over master account approvals.
The Context
- Regulatory scrutiny: Custodia's application was submitted amid increased oversight of crypto firms following the FTX collapse, highlighting the tension between state-chartered banks and federal regulations.
- Legal battle: Custodia claimed that existing laws mandated automatic access to master accounts, challenging the Federal Reserve's authority as unconstitutional.
- Dissenting opinions: Two judges warned about potential risks to the dual banking system and unchecked executive power, indicating ongoing debates about regulatory authority.
The Number
The vote of Tenth Circuit judges denying the en banc rehearing, emphasizing the divide on regulatory discretion which could shape future cases for crypto banks.
Takeaway
Custodia's legal journey may set a precedent for other cryptocurrency firms seeking similar access, potentially leading to further appeals to the Supreme Court.
This article was generated by AI from 3 verified sources and reviewed by A47 editorial systems.
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US appeals court denies Custodia Bank rehearing in Federal Reserve case
The U.S. Court of Appeals for the Tenth Circuit has denied Custodia Bank's request for a rehearing in its legal challenge against the Federal Reserve over access to the U.S. banking system, effectively ending Custodia's pursuit of a Fed master accoun...