Tenth Circuit Denies Custodia Bank's Petition for En Banc Rehearing in Federal Reserve Case
Here's what it means for you.
If you're in the crypto or banking sector, this ruling may affect your access to Federal Reserve payment systems.
What happened
On March 13, 2026, the U.S. Court of Appeals for the Tenth Circuit denied Custodia Bank's petition for rehearing en banc in its dispute with the Federal Reserve.
The Context
- Custodia Bank: Founded in 2020, it aimed to directly access Federal Reserve payment systems but faced regulatory hurdles.
- Legal Battle: This decision concludes a multi-year legal struggle initiated after Custodia's application was denied in January 2023.
- Regulatory Environment: The ruling reflects ongoing tensions between traditional banking infrastructure and crypto firms amid heightened scrutiny.
The Number
The vote by Tenth Circuit judges to deny the en banc rehearing, highlighting the court's stance on Federal Reserve discretion.
Takeaway
The crypto banking sector is now eyeing potential Supreme Court review, but immediate shifts in market dynamics remain unlikely.
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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...