TechFlow News, March 15: According to The Block, the U.S. Court of Appeals for the Tenth Circuit rejected Custodia Bank’s petition for en banc rehearing by a 7–3 vote, upholding the panel’s October 2025 ruling that affirmed the Federal Reserve’s authority to approve or deny master account applications from qualified institutions.
Custodia is a Wyoming-chartered special-purpose depository institution founded by Caitlin Long. The company applied for a master account in October 2020 but was denied by the Federal Reserve Bank of Kansas City in January 2023, citing risks associated with Custodia’s cryptocurrency business model. Custodia subsequently filed a lawsuit arguing that qualified depository institutions are entitled to master accounts under the law; however, this claim has been rejected at every level of the judiciary.
