Custodia Bank Seeks Rare En Banc Review in Federal Court
- Custodia Bank is requesting a rehearing from the U.S. Court of Appeals for the 10th Circuit after losing a case against the Federal Reserve.
- The bank seeks an en banc review, involving all 19 judges, due to constitutional and states’-rights concerns.
- A master account allows banks direct access to the Fed’s payment services, crucial for national operations.
- No crypto-focused bank has been granted a master account by the Fed to date.
- In October, two judges upheld a ruling allowing the Fed discretion to deny master accounts based on stability concerns.
Custodia Bank argues that denying its application for a master account raises significant constitutional questions and undermines states’ rights in banking regulation. This appeal comes after previous rulings supported the Federal Reserve’s authority to reject applications that might threaten financial stability.
The outcome of this request could set a precedent affecting future applications from crypto-focused banks seeking similar privileges from the Federal Reserve (Source)
