U.S. Court Upholds Fed’s Decision to Deny Custodia’s Master Account Application

Chainthink

Release Time: 03/15/2026 02:51:04

Summary

On March 15, the U.S. Court of Appeals for the Tenth Circuit denied Custodia’s request for a full rehearing in a 7-3 vote, upholding the October 2025 ruling that the Fed may deny master account applications. Custodia, a Wyoming bank led by Caitlin Long, applied in 2020 but was rejected in 2023 due to CFT risks associated with its crypto operations. The court dismissed Custodia’s legal challenge at all levels, affirming the Fed’s authority. Meanwhile, the EU’s MiCA framework continues to shape global regulatory expectations for crypto firms.

ChainThink reports that on March 15, the U.S. Tenth Circuit Court of Appeals denied Custodia, the crypto bank’s request for an en banc rehearing in a 7-3 vote, upholding the panel’s October 2025 ruling that the Federal Reserve has the authority to approve or deny master account applications from eligible 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 in January 2023 by the Federal Reserve Bank of Kansas City, citing risks associated with its cryptocurrency business model. Custodia filed a lawsuit asserting that eligible depository institutions are legally entitled to a master account, but these claims have not been upheld at any level of the courts. (The Block)

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