U.S. Appeals Court Rules Against Custodia Bank in Federal Reserve Dispute

[bonk]

A U.S. appellate court has ruled against Custodia Bank, the crypto-focused institution founded by Caitlin Long, upholding a lower court’s decision that sided with the Federal Reserve.

In a Friday judgment, the U.S. Court of Appeals for the Tenth Circuit affirmed a Wyoming district court’s ruling that denied Custodia’s request for a Federal Reserve master account. The court noted that while the case centers on cryptocurrency and digital assets, “there is nothing new about this issue,” referencing long-standing precedents on the Fed’s authority.

Custodia first applied for the account in October 2020, seeking direct access to the U.S. payments network used by government and regulated banks.