The U.S. Court of Appeals ruled that the crypto bank Custodia does not have the right to compel the Federal Reserve to grant access to a master account

According to Coindesk, the U.S. Tenth Circuit Court of Appeals ruled that the Wyoming-based crypto bank Custodia does not have the right to compel the Federal Reserve to grant it access to a master account, upholding last year's unfavorable ruling against Custodia by a lower court.

Custodia filed a lawsuit against the Federal Reserve in 2022, initially claiming that the Fed took too long to evaluate its master account application, and later amended the lawsuit after the Fed denied its application. Custodia argued that the Federal Reserve has no authority to deny master account applications. Last year, a federal judge dismissed Custodia's lawsuit, ruling that the Federal Reserve is not obligated to grant a master account to every eligible depository institution. The company subsequently appealed, and a panel of three judges heard arguments from both sides in January of this year.