A major decision in the US crypto banking landscape sees the Federal Reserve prevail against Custodia Bank’s bid for a master account. The Tenth Circuit Court of Appeals, siding with the Fed, ruled on October 31st, 2025, effectively limiting Custodia’s access to payment systems within the financial system. This ruling reinforces the Fed’s control over digital asset institutions and their integration into mainstream finance. The decision is significant as it directly impacts Custodia Bank’s business model and future plans for stablecoin projects and crypto custody services. 2025 saw Custodia founder Caitlin Long face rejection from both the Fed and Kansas City Bank, raising concerns about the future of crypto-focused banking within regulated environments.