US appeals court denies Custodia Bank rehearing in Fed case

The U.S. Court of Appeals for the Tenth Circuit denied Custodia Bank’s appeal against the Federal Reserve regarding access to the U.S. banking system. The decision allows regional Federal Reserve banks to decide on granting “master accounts” for direct access to the central bank’s payment infrastructure. Custodia Bank, focused on digital assets, sought a master account but was rejected due to concerns about its crypto-focused business model. The court upheld the Federal Reserve’s discretion in granting master accounts, sparking debate over regulation of crypto-focused financial institutions.