Crypto Bank Custodia Suffers Another Court Rejection in Fed Master Account Pursuit

Crypto bank Custodia, founded by Caitlin Long, lost its appeal to secure a Federal Reserve master account, as the 10th Circuit Court of Appeals affirmed a lower court's ruling. The court found that the plain language of relevant statutes grants Federal Reserve Banks discretion to reject master account access requests from eligible entities. Custodia had sued the Fed in 2022, arguing the central bank lacked the legal authority to deny its application. Although Custodia noted a strong dissent in the ruling and is considering petitioning for a rehearing, the court upheld the Fed's discretion. Separately, Fed Governor Chris Waller recently suggested the central bank might create a "skinny master account" option for crypto firms to access payment rails.

(Source：CoinDesk)