{"id":17574,"date":"2025-11-01T20:19:34","date_gmt":"2025-11-01T19:19:34","guid":{"rendered":"https:\/\/wsj-crypto.com\/?p=17574"},"modified":"2025-11-01T20:19:34","modified_gmt":"2025-11-01T19:19:34","slug":"custodia-banks-fight-for-fed-master-account-ends-in-setback","status":"publish","type":"post","link":"https:\/\/wsj-crypto.com\/index.php\/2025\/11\/01\/custodia-banks-fight-for-fed-master-account-ends-in-setback\/","title":{"rendered":"Custodia Bank&#8217;s Fight for Fed Master Account Ends in Setback"},"content":{"rendered":"<p> &#8220;`html<br \/>\n<\/p>\n<div>\n<div class=\"trusted-editorial-content trusted-editorial-content--top\">\n<div class=\"trusted-editorial-content__text\"><u>Reliable Editorial<\/u> content, assessed by prominent industry specialists and experienced editors. <a href=\"#\" target=\"_blank\">Advertisement Disclosure<\/a><\/div>\n<\/p><\/div>\n<p><span style=\"font-weight: 400;\">Custodia Bank, the well-known cryptocurrency institution established by Caitlin Long, has encountered another judicial obstacle in its pursuit of a Federal Reserve master account. Remarkably, the Wyoming-based organization could not obtain a beneficial appeal verdict following an initial court dismissal in March 2024.<br \/><\/span><\/p>\n<h2><b>Appeals Court Affirms Fed Decision In Custodia Matter<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">In 2020, Custodia Bank submitted a request to the Federal Reserve Bank of Kansas City (FRBKC) seeking a master account, which would provide the crypto-oriented institution direct access to the Federal Reserve\u2019s payment framework, permitting it to function without depending on intermediary banks.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Nevertheless, the request was denied in 2023, with the FRBKC referencing worries regarding banking practices. This ruling followed Custodia&#8217;s previous filing of a lawsuit against the Federal Reserve in 2022, accusing the regulator of an \u201cillegal delay\u201d in evaluating its application.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In March 2024, the notable crypto bank legally contested the Fed\u2019s ruling, asserting that the central bank lacked the legal power to reject its master account request. The bank also alleged that the Federal Reserve Board of Governors may have engaged in collusion with the Kansas City Fed to orchestrate the denial.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Judge Scott Skavdahl of the US District Court for the District of Wyoming <a href=\"https:\/\/bitcoinist.com\/custodia-bank-loses-claim-to-a-fed-master-account\/\" target=\"_blank\" rel=\"noopener \">rejected<\/a> Custodia\u2019s assertions, determining that federal law does not require the Federal Reserve to grant a master account to each qualified institution. He confirmed that the Fed retains broad authority in deciding whether to approve or deny such requests.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This judgment was followed by an appeal at the 10th Circuit Court of Appeals in April 2024. Nineteen months thereafter, the Appellate court has now <a href=\"https:\/\/storage.courtlistener.com\/recap\/gov.uscourts.ca10.88322\/gov.uscourts.ca10.88322.167.0.pdf\" target=\"_blank\" rel=\"noopener nofollow\">sustained<\/a> the lower court&#8217;s decision, endorsing the Fed\u2019s discretion in granting a master account or not, irrespective of eligibility.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The ruling stated:\u00a0<\/span><\/p>\n<blockquote>\n<p><span style=\"font-weight: 400;\">We concur with the district court that \u201c[t]he straightforward wording of the relevant statutes can only reasonably be interpreted to provide the Federal Reserve Banks discretion in approving or denying applications for master accounts.\u201d Custodia Bank, 728 F. Supp. 3d at 1245. Hence, we determine that Custodia is not statutorily and automatically entitled to a master account. We RATIFY the district court\u2019s verdict in favor of Defendants on all claims.\u00a0<\/span><\/p>\n<\/blockquote>\n<h2><b>What Lies Ahead For Custodia?\u00a0<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">In a <a href=\"https:\/\/x.com\/custodiabank\/status\/1984320655408443688\" target=\"_blank\" rel=\"noopener nofollow\">reply<\/a> to the judicial verdict, Custodia suggested a possible petition for rehearing, referencing a strong dissenting opinion from one of the appeals court judges.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The statement expressed:\u00a0<\/span><\/p>\n<blockquote>\n<p><span style=\"font-weight: 400;\">While we were optimistic about a victory at the Tenth Circuit today, we received the next best alternative \u2014 a compelling dissent. It raised significant Constitutional inquiries regarding the Federal Reserve and was composed by a judge serving by designation on the panel of a similar case in the Ninth Circuit. Alongside Judge Bacharach\u2019s opinion in the Fourth Corner case, there\u2019s now a 2\u20132 division on this matter among Tenth Circuit judges (2\u20131 in Custodia\u2019s favor among active Tenth Circuit judges). Custodia has the option to seek a rehearing by the Tenth Circuit, and we are actively contemplating that.<\/span><\/p>\n<\/blockquote>\n<p><span style=\"font-weight: 400;\">At press time, the total cryptocurrency market capitalization remains valued at $3.68 trillion following a 2.65% increase.\u00a0<\/span><\/p>\n<figure style=\"width: 1563px\" class=\"wp-caption aligncenter\"><img fetchpriority=\"high\" decoding=\"async\" src=\"https:\/\/www.tradingview.com\/x\/WkOwYlhE\/\" alt=\"Custodia\" width=\"1563\" height=\"926\"\/><figcaption class=\"wp-caption-text\">Total cryptocurrency market cap valued at $3.67 trillion on the daily chart | Source: <a href=\"https:\/\/www.tradingview.com\/chart\/xg17RJqK\/\" target=\"_blank\" rel=\"noopener nofollow\">TOTAL chart on Tradingview.com<\/a><\/figcaption><\/figure>\n<p>Featured image from Fox Business, chart from Tradingview<\/p>\n<div class=\"trusted-editorial-content trusted-editorial-content--bottom\">\n\t\t\t\t\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/bitcoinist.com\/wp-content\/uploads\/2025\/02\/safe.png\" class=\"trusted-editorial-content__icon\"\/><\/p>\n<p><strong>Editorial Procedure<\/strong> for bitcoinist is focused on providing thoroughly researched, precise, and impartial content. We maintain rigorous sourcing standards, and each page is subject to meticulous review by our team of leading technology specialists and experienced editors. This method ensures the reliability, relevance, and significance of our content for our audience.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/bitcoinist.com\/custodia-banks-appeal-denied-in-fed-master-account\/\">Source link <\/a><br \/>\n&#8220;`<\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;`html Reliable Editorial content, assessed by prominent industry specialists and experienced editors. Advertisement Disclosure Custodia Bank, the well-known cryptocurrency institution established by Caitlin Long, has encountered another judicial obstacle in its pursuit of a Federal Reserve master account. Remarkably, the Wyoming-based organization could not obtain a beneficial appeal verdict following an initial court dismissal in<\/p>\n","protected":false},"author":3,"featured_media":17575,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[22],"tags":[4091],"class_list":{"0":"post-17574","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-bitcoin","8":"tag-gptreturn-a-list-of-comma-separated-tags-from-this-title-custodia-banks-appeal-denied-in-battle-over-fed-master-account-gpt"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Custodia Bank&#039;s Fight for Fed Master Account Ends in Setback - WSJ-Crypto<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/wsj-crypto.com\/index.php\/2025\/11\/01\/custodia-banks-fight-for-fed-master-account-ends-in-setback\/\" \/>\n<meta property=\"og:locale\" content=\"it_IT\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Custodia Bank&#039;s Fight for Fed Master Account Ends in Setback - WSJ-Crypto\" \/>\n<meta property=\"og:description\" content=\"&#8220;`html Reliable Editorial content, assessed by prominent industry specialists and experienced editors. Advertisement Disclosure Custodia Bank, the well-known cryptocurrency institution established by Caitlin Long, has encountered another judicial obstacle in its pursuit of a Federal Reserve master account. 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