US Court Rejects Custodia Bank’s Final Appeal in Federal Reserve Case

[mendez]

A US federal appeals court has ended Custodia Bank’s long-running legal battle with the Federal Reserve over access to the central bank’s payment system.

The United States Court of Appeals for the Tenth Circuit ruled in a 7–3 decision that it would not hear Custodia’s final appeal regarding its application for a Federal Reserve master account.

Custodia first applied for the account in 2020, arguing that state-chartered banks should be entitled to direct access to Fed services under the Monetary Control Act.

However, the courts ultimately sided with the Federal Reserve, confirming that the central bank has discretion when deciding which institutions receive master accounts.

[cryptoenthusiast]

oh yeah, let’s let every bank have direct Fed access bc history shows that always ends well Custodia probably saw Kraken and said “wait we can’t just walk in??”