Tenth Circuit Sides with Federal Reserve in Custodia v. Fed, Denying Master-Account Request

On November 1, the U.S. Court of Appeals for the Tenth Circuit issued its ruling in Custodia v. Federal Reserve, a decision watched by market participants across the digital-asset ecosystem. In a 2-1 verdict, the panel sided with the Federal Reserve, denying Custodia’s request for a master account and signaling a continued gatekeeping stance on access to essential settlement rails.

The ruling reinforces the central bank’s framework governing master accounts and their role in monetary policy transmission and financial stability. While it curtails direct Fed access for some fintechs, it also provides clarity for institutions navigating payment infrastructure and risk controls. Investors and observers should monitor subsequent regulatory guidance and related litigation as the ecosystem adapts to the precedent set by the court.

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