The post US Court Upholds Fed’s Right to Deny Custodia Bank Account appeared on BitcoinEthereumNews.com. Tenth Circuit backs the Fed in a 2 to 1 decision, denying Custodia direct access. Ruling affirms full discretion over master accounts amid crypto-related risks. Dissent warns the stance could curb innovation and fair competition. The U.S. Tenth Circuit Court of Appeals ruled in favor of the Federal Reserve, rejecting Custodia Bank’s bid for a master account that would grant direct access to the central bank’s payment system. The 2-to-1 decision is a setback for the Wyoming-based digital-asset bank and reinforces the Fed’s authority to restrict access when it perceives systemic risk 🚨BREAKING: The 10th Circuit Court of Appeals has ruled in the @custodiabank v. @federalreserve case. In a 2–1 decision, the court sided with the Fed, rejecting Custodia’s bid to compel the central bank to grant it a master account. Story developing. More to come. pic.twitter.com/CZtbHNLrEr — Eleanor Terrett (@EleanorTerrett) October 31, 2025 Related: U.S. Judge Upholds The Fed’s Action to Deny Custodia Bank Master Account Court Says Fed Holds Full Discretion Over Master Accounts The panel agreed the Federal Reserve can decide which institutions receive master accounts and warned that automatic approvals could weaken safeguards over core payment infrastructure. Judges said granting accounts without close oversight could expose the system to risks tied to crypto-aligned business models. Custodia’s Application History Underscores Risk Concerns Custodia applied in 2020 through the Kansas City Fed; regulators later denied the request, citing digital-asset exposure, volatility, and compliance challenges. A Wyoming district court dismissed the bank’s lawsuit; the appellate ruling now affirms the Fed’s position. Related: Custodia and Vantage Introduce Bank-Issued Stablecoin Avit Dissent Flags Innovation And Competition Costs Judge Timothy Tymkovich dissented, arguing the Fed could manage risks through layered oversight instead of outright denial, and noted traditional banks with master accounts have also posed serious risks. He cautioned that excluding innovative… The post US Court Upholds Fed’s Right to Deny Custodia Bank Account appeared on BitcoinEthereumNews.com. Tenth Circuit backs the Fed in a 2 to 1 decision, denying Custodia direct access. Ruling affirms full discretion over master accounts amid crypto-related risks. Dissent warns the stance could curb innovation and fair competition. The U.S. Tenth Circuit Court of Appeals ruled in favor of the Federal Reserve, rejecting Custodia Bank’s bid for a master account that would grant direct access to the central bank’s payment system. The 2-to-1 decision is a setback for the Wyoming-based digital-asset bank and reinforces the Fed’s authority to restrict access when it perceives systemic risk 🚨BREAKING: The 10th Circuit Court of Appeals has ruled in the @custodiabank v. @federalreserve case. In a 2–1 decision, the court sided with the Fed, rejecting Custodia’s bid to compel the central bank to grant it a master account. Story developing. More to come. pic.twitter.com/CZtbHNLrEr — Eleanor Terrett (@EleanorTerrett) October 31, 2025 Related: U.S. Judge Upholds The Fed’s Action to Deny Custodia Bank Master Account Court Says Fed Holds Full Discretion Over Master Accounts The panel agreed the Federal Reserve can decide which institutions receive master accounts and warned that automatic approvals could weaken safeguards over core payment infrastructure. Judges said granting accounts without close oversight could expose the system to risks tied to crypto-aligned business models. Custodia’s Application History Underscores Risk Concerns Custodia applied in 2020 through the Kansas City Fed; regulators later denied the request, citing digital-asset exposure, volatility, and compliance challenges. A Wyoming district court dismissed the bank’s lawsuit; the appellate ruling now affirms the Fed’s position. Related: Custodia and Vantage Introduce Bank-Issued Stablecoin Avit Dissent Flags Innovation And Competition Costs Judge Timothy Tymkovich dissented, arguing the Fed could manage risks through layered oversight instead of outright denial, and noted traditional banks with master accounts have also posed serious risks. He cautioned that excluding innovative…