A federal appeals court in Denver poured cold water Friday on crypto bank Custodia’s attempts to force the Federal Reserve to grant it a coveted master account, siding with a lower court’s previous decision.  A panel of three judges affirmed that Custodia is not owed a master account just because it is technically eligible for one, and sided with the Federal Reserve’s arguments that the central bank has the right to deny such privileges in certain cases.  In the case of Custodia, the Fed’s Kansas City branc ...

The US Court of Appeals for the Tenth Circuit ruled against Custodia Bank on Oct. 31, affirming the Federal Reserve’s authority to deny the crypto-focused bank’s application for a master account. The 2-1 decision upheld a lower court judgment in favor of the Federal Reserve Board of Governors and the Federal Reserve Bank of Kansas City. The court held that Federal Reserve Banks have discretion to reject master account applications from statutorily eligible institutions. Judge Ebel’s majority opinion rejec ...