Custodia Bank Seeks Full Tenth Circuit Rehearing Over Federal Reserve Master Account Denial
Custodia Bank has filed a petition for rehearing en banc before the U.S. Tenth Circuit Court of Appeals challenging the Federal Reserve's denial of a master account. The petition requests that all active judges on the Tenth Circuit reconsider the case rather than the original three-judge panel which issued the October 2025 ruling.
Custodia argues that the panel's decision effectively grants the Federal Reserve unreviewable discretion to deny master accounts, undermining state banking authority and raising constitutional concerns. The bank contends the panel misinterpreted the Monetary Control Act, which states that Federal Reserve services "shall be available" to eligible depository institutions, turning this language into optional discretion.
The October ruling upheld the Fed's authority to deny master accounts to Custodia, marking a setback in the crypto bank's ongoing efforts to gain access to core central bank payment services. Custodia has been engaged in litigation over this matter since 2022, and the case is viewed as a significant test regarding crypto banks' ability to access the U.S. payments system.
The petition for rehearing was filed on December 15, 2025, but it remains uncertain whether the full Tenth Circuit will agree to rehear the case, keeping the debate over central bank access for crypto banks alive.
