Custodia asks full appeals court to reconsider Fed master account denial
Crypto bank Custodia petitioned the Tenth Circuit for an en banc rehearing after a panel upheld the Fed's denial of master account access.Summary
Wyoming-based crypto bank Custodia has filed a petition for rehearing en banc before the full Tenth Circuit Court of Appeals, seeking reconsideration of an October ruling that favored the Federal Reserve in denying Custodia access to a master account and core central bank payment services. Custodia argues that the three-judge panel's decision improperly grants the Fed "unreviewable discretion" over essential payment infrastructure, which undermines state banking authority and raises "serious constitutional questions" regarding the appointment of officials. Furthermore, the bank contends the panel misinterpreted the Monetary Control Act, effectively allowing regional Federal Reserve banks to override state charters by making services that "shall be available" optional. This legal battle, ongoing since 2022, is a key test case for crypto banking access to the U.S. payments system.
(Source：CoinDesk)