US Court Denies Custodia Bank's Appeal for Federal Reserve Master Account

Friday Oct 31 2025 19:20

Duration

1 min

  1. 1. Case Summary: Custodia Bank vs. Federal Reserve

  2. 1.1 Details of the Court's Ruling

  3. 1.2 The Significance of a Master Account

  4. 1.3 Custodia's Response and Next Steps

  5. 1.4 Custodia's Background and History

Case Summary: Custodia Bank vs. Federal Reserve

A US appellate court has sided with the Federal Reserve, rejecting Custodia Bank's appeal for a master account. This decision reinforces the Fed's stance on the risks associated with crypto-focused financial institutions.

Details of the Court's Ruling

In a ruling delivered on Friday by the US Court of Appeals for the Tenth Circuit, the court affirmed a previous decision by a lower court in the District of Wyoming. Custodia Bank filed the appeal in April 2024 after the lower court had already ruled against granting them a Federal Reserve master account. This denial represents the latest challenge for the bank, which initially submitted its application in October 2020.

The Significance of a Master Account

Securing a Federal Reserve master account would have provided Custodia Bank with direct access to the US government's payments network and authorized financial institutions. Custodia initially sought access through the Federal Reserve Bank of Kansas City. However, the Fed rejected their application in 2023, citing potential risks that were deemed "inconsistent with safe and sound banking practices" due to the bank's focus on digital assets.

Custodia's Response and Next Steps

Following the release of the court's decision, Custodia stated on X that they are "actively considering" petitioning the appellate court for a rehearing. They noted a "strong dissent" within the court, which raised "serious Constitutional questions about the Federal Reserve." This dissent was authored by a judge involved in a similar case in the Ninth Circuit.

Custodia's Background and History

Founded in Wyoming by Caitlin Long under a state-level regulatory environment conducive to blockchain innovation, Avanti was among the pioneering "blockchain banks." The company rebranded as Custodia in 2022. Cointelegraph has reached out to Long for comments.

Risk Warning: This article is provided for informational purposes only and does not constitute investment advice, investment research, or a recommendation to trade. The views expressed are those of the author and do not necessarily reflect the position of Markets.com. When considering shares, indices, forex (foreign exchange), and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and may not be suitable for all investors. Leveraged products can result in capital loss. Past performance is not indicative of future results. Before trading, ensure you fully understand the risks involved and consider your investment objectives and level of experience. Cryptocurrency CFD trading restrictions may apply depending on jurisdiction.

Default Author Avatar

Written by:

Noah Lee

Asset List

View Full List
Most Traded Commodities Indices Crypto Shares Forex
Asset
Sell
Buy
Change (%)

Trade Now

Trade Now

Trade Now

Trade Now
Asset
Sell
Buy
Change (%)

Trade Now

Trade Now

Trade Now

Trade Now
Asset
Sell
Buy
Change (%)

Trade Now

Trade Now

Trade Now

Trade Now
Asset
Sell
Buy
Change (%)

Trade Now

Trade Now

Trade Now

Trade Now
Asset
Sell
Buy
Change (%)

Trade Now

Trade Now

Trade Now

Trade Now
Asset
Sell
Buy
Change (%)

Trade Now

Trade Now

Trade Now

Trade Now

Latest

View all
Fed Rate Decision

Wednesday, 22 July 2026

Duration

5 min

Fed Rate Decision Preview: Will the Fed Raise Rates at the July 29, 2026 Meeting?
us-iran-oil

Wednesday, 22 July 2026

Duration

6 min

Crude Oil Prices Rise 2% to Six-Week High as US-Iran Tensions Escalate
tesla earnings q2 2026

Wednesday, 22 July 2026

Duration

11 min

Tesla 2026 Q2 Earnings: Revenue Surges 26% as AI Investments Weigh on Profits and Cash Flow

Latest news

gold

Thursday, 23 July 2026

Indices

Gold Price Today, July 24: Gold Slips to $4,043 as Dollar and Yields Rise

South Korea Tightens Rules on Single-Stock Leveraged

Thursday, 23 July 2026

Indices

South Korea Tightens Rules on Single-Stock Leveraged ETFs, Raises Cash Requirement to KRW 30 Million from July 31

intel earnings 2026 q2

Thursday, 23 July 2026

Indices

Intel Q2 Revenue Jumps 25% on AI Demand, Beats Estimates as Strong Q3 Outlook Lifts Shares

USD to JPY exchange rate today

Thursday, 23 July 2026

Indices

US Treasury Says Yen Is Deeply Undervalued, Urges Bank of Japan to Continue Rate Hikes

gold

Wednesday, 22 July 2026

Indices

Gold Price Today, July 23: Gold Holds Above $4,100 as Oil Rally Limits Gains

tesla earnings q2 2026

Wednesday, 22 July 2026

Indices

Tesla 2026 Q2 Earnings: Revenue Surges 26% as AI Investments Weigh on Profits and Cash Flow

google earnings 2026 q2

Wednesday, 22 July 2026

Indices

Google 2026 Q2 Earnings: Cloud Revenue Soars 82% as AI Investments Drive Growth Despite Rising Capital Spending

Fed Rate Decision

Wednesday, 22 July 2026

Indices

Fed Rate Decision Preview: Will the Fed Raise Rates at the July 29, 2026 Meeting?

us-iran-oil

Wednesday, 22 July 2026

Indices

Crude Oil Prices Rise 2% to Six-Week High as US-Iran Tensions Escalate

kospi

Wednesday, 22 July 2026

Indices

KOSPI Jumps More Than 3% as Alphabet’s $200 Billion AI Plan Lifts Chip Stocks

See all news