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

BlockBeats News, March 15th, the U.S. Court of Appeals for the Tenth Circuit rejected Cryptobank Custodia's request for an en banc rehearing in a 7-3 vote, upholding the October 2025 panel ruling that affirmed the Federal Reserve's authority to approve or deny primary account applications from eligible institutions.

Custodia is a Wyoming-chartered special purpose depository institution founded by Caitlin Long. The company applied for a primary account in October 2020 and was later rejected by the Kansas City Fed in January 2023 citing risks associated with its crypto-native business model. Custodia had filed a lawsuit claiming that eligible depository institutions should be entitled to a primary account as a matter of law, but its claims were not supported in the courts at all levels. (The Block)