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US Court Upholds Fed's Ruling, Dismisses Custodia's Main Account Review Request

2026.03.15 08:31:35

On March 15, the U.S. Court of Appeals for the Tenth Circuit denied Cryptobank Custodia’s request for an en banc rehearing in a 7-3 vote, upholding an October 2025 panel ruling that affirmed the Federal Reserve’s authority to approve or deny primary account applications from eligible institutions. Custodia—a Wyoming-chartered special purpose depository institution founded by Caitlin Long—applied for a primary account in October 2020. The Kansas City Fed rejected the application in January 2023, citing risks tied to its crypto-native business model. Custodia sued, arguing eligible depository institutions are legally entitled to a primary account, but courts at all levels have rejected its claims. (The Block)
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