Custodia renews bid for Fed master account in rehearing push at Tenth Circuit

Custodia Bank, a crypto-focused bank founded by Caitlin Long, has filed a petition for a rehearing en banc with the full Tenth Circuit Court of Appeals. The bank is challenging the court's prior decision that upheld the Federal Reserve's denial of a master account, which would allow Custodia to process payments directly with the US central bank.

Custodia argues that the panel misread the Monetary Control Act, asserting that eligible banks are entitled to such an account, and that the Fed's denial undermines state banking authority by effectively vetoing a state-approved charter. A master account is crucial as it grants direct access to core payment systems, avoiding reliance on costly and risky correspondent banks.

The Wyoming-chartered company has sought a Fed master account since 2020, facing rejections from the Kansas City Fed in January 2023. Custodia's ongoing legal battle underscores broader industry challenges regarding "debanking."

(Source：Cointelegraph)