Overview
- A three-judge Tenth Circuit panel ruled 2-1 that Custodia cannot compel the Federal Reserve to grant it a master account, affirming a lower court decision.
- Judge David Ebel’s majority opinion read the Federal Reserve Act as permissive and found the Monetary Control Act’s “shall be available” clause does not mandate universal access, while Judge Timothy Tymkovich dissented.
- The Federal Reserve Bank of Kansas City denied Custodia’s application in January 2023, citing risks tied to the bank’s crypto-focused business model, after the bank first applied in 2020.
- Custodia said it is considering petitioning the Tenth Circuit for a rehearing, highlighting what it called a strong dissent in Friday’s decision.
- Fed Governor Christopher Waller has floated a limited “skinny master account” concept that remains only a proposal, and no crypto-focused bank has obtained a full master account to date.