Crypto · 13 March, 2026 · 2 min read
Tenth Circuit Denies Custodia Bank Rehearing, Upholds Federal Reserve's Master-Account Denial
Tenth Circuit denied Custodia Bank's rehearing request in its master-account lawsuit. Court affirmed the Federal Reserve's decision denying Custodia access to a master account.
Existence and nature of judicial split/dissent in the appeals decision.
1 of 2 outlets skipped it: the Tenth Circuit's denial was issued in a per curiam ruling (Bloomberg-only)..
2outlets compared
Same story, two versions
tap a side to read it in full
Bloomberg Law News
“A Wyoming-based cryptocurrency bank won’t get a second hearing from a US appeals court in its quest to force the Federal Reserve to grant it access to the central bank’s payments systems.”Read the original ↗
CoinDesk
“Court closes Custodia fight with Federal Reserve just as Fed opens master-account door”Read the original ↗
Bloomberg's copy focuses narrowly on the court refusing a rehearing and frames Custodia's action as a straightforward denial; CoinDesk frames the same denial within a broader policy context that the Fed is simultaneously "opening" avenues for crypto accounts, changing the perceived implications of the ruling.
Court denial summary
The U.S. Court of Appeals for the Tenth Circuit denied Custodia Bank’s petition for a rehearing en banc, leaving in place a split-panel decision that had affirmed the Federal Reserve’s denial of a master account.
“A Wyoming-based cryptocurrency bank won’t get a second hearing from a US appeals court in its quest to force the Federal Reserve to grant it access to the central bank’s payments systems. Custodia Bank in December asked the full US Court of Appeals for the Tenth Circuit to review a split panel ruling that affirmed the Biden-era decision by the Fed’s Board of Governors in Washington and the Federal Reserve Bank of Kansas City to deny the bank’s request for a master account. The Tenth Circuit denied Custodia’s petition for a full court review in a per curiam ruling Friday.”
Bloomberg Law reported that Custodia sought another hearing to force the Fed to grant access to the central bank’s payments systems, but the court issued a per curiam ruling denying the petition on Friday.
CoinDesk added that the court revealed the denial came by a 7-3 vote, signaling the appeals court’s refusal to reopen the case.C
Custodia's challenge
Custodia’s legal challenge targeted both the Federal Reserve Board in Washington and the Federal Reserve Bank of Kansas City, arguing it should receive a master account to participate fully in the central bank’s payments systems. Bloomberg Law described Custodia’s December petition to the full Tenth Circuit after the split panel had already sided with the Fed’s decision to deny a master account. CoinDesk’s coverage framed this denial as the latest in a series of legal setbacks for Custodia, underscoring the uphill battle crypto-focused banks face in obtaining master accounts.C
Federal Reserve context
The decision comes amid signs that parts of the Fed system are starting to open limited pathways for crypto firms, even as full master accounts remain elusive. CoinDesk reported that the Federal Reserve Bank of Kansas City recently granted Kraken a special limited account that shares many features of a master account, and that the Board of Governors is working on a policy to create so-called “skinny” master accounts. CBloomberg Law’s reporting on the denial illustrates that despite those incremental moves, banks like Custodia still face formal denials from both the Kansas City Fed and the Fed’s Board.
“However, the latest in a string of legal defeats arrives as the Fed system has cracked a door open on master accounts for crypto firms. First, a regional bank, the Federal Reserve Bank of Kansas City, recently granted crypto exchange Kraken a special new limited account. Though it's not a full master account, it carries many of the same features, and Kraken is the first crypto firm to get one for its banking arm. At the same time, the national-level Federal Reserve board is working on a new policy to welcome crypto firms and others into so-called "skinny" master accounts that would likely be similar to Kansas City's approach.”
Implications for crypto banks
Industry observers say the Tenth Circuit’s refusal to rehear the case leaves the immediate legal landscape intact while highlighting an uncertain path forward for other crypto-native banks seeking central-bank access. CoinDesk emphasized that the Fed Board’s policy process remains at an early stage, making it unclear when crypto banks can apply for any new “skinny” master accounts; Bloomberg Law’s piece underscores that the court’s per curiam denial closes one procedural route for Custodia. Together, the reporting signals that access may open incrementally via regional experiments or new Fed rules rather than through litigation wins.
Source limitation notice
Note on sources and limits: the summary above draws solely on the two provided articles from Bloomberg Law and CoinDesk, which together report the court’s per curiam denial and the 7-3 vote while outlining nascent Fed policy experiments such as Kansas City’s limited account for Kraken.C
“The Tenth Circuit denied Custodia’s petition for a full court review in a per curiam ruling Friday.”
No additional sources were provided, so this summary cannot include other perspectives or further legal documents beyond those snippets; please provide more articles if you want broader sourcing or more detail.