Custodia Bank has lost its request for a full court rehearing in its legal battle to obtain a Federal Reserve master account. The US Court of Appeals for the Tenth Circuit upheld an earlier ruling, with a 7-3 vote, affirming the Federal Reserve Bank of Kansas City's (FRBKC) authority to deny such applications. This decision reinforces the Fed's discretion in granting master accounts, which provide direct access to its payment system. Custodia, a crypto bank, had argued the denial was unlawful. The bank's options now include appealing to the US Supreme Court or applying for a special limited master account similar to the one granted to Kraken.

# Appeal Rejected Related Articles

Custodia Bank Loses Case For Rehearing Over Fed Master Account – Details

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