The U.S. Tenth Circuit Court of Appeals has rejected Custodia's request for a rehearing by the full court, with a 7-3 vote. According to Odaily, this decision upholds the October 2025 panel ruling affirming the Federal Reserve's authority to approve or deny master account applications from eligible institutions.
Custodia, a Wyoming-chartered special purpose depository institution founded by Caitlin Long, applied for a master account in October 2020. However, in January 2023, the Kansas City Federal Reserve denied the application, citing risks associated with Custodia's cryptocurrency business model. Custodia subsequently filed a lawsuit, arguing that eligible depository institutions are legally entitled to a master account, but their claims have not been supported at any court level.