Federal Court Rules in Favor of Fed on Custodia Master Account Access

A U.S. appeals court has ruled that the Federal Reserve will maintain control over which institutions can access the nation’s core payments system. The Tenth Circuit Court of Appeals upheld the Fed’s decision to deny Custodia Bank, a Wyoming-based Special Purpose Depository Institution (SPDI), a master account, effectively granting the Fed broad authority in this area. The ruling has significant implications for the future of crypto banking and could limit access for institutions seeking direct participation in the Federal Reserve system.