BlockBeats News, March 15th, the U.S. Court of Appeals for the Tenth Circuit rejected Cryptobank Custodia’s request for an en banc rehearing in a 7-3 vote, upholding the October 2025 panel ruling that affirmed the Federal Reserve’s authority to approve or deny primary account applications from eligible institutions.
Custodia is a Wyoming-chartered special purpose depository institution founded by Caitlin Long. The company applied for a primary account in October 2020 and was later rejected by the Kansas City Fed in January 2023 citing risks associated with its crypto-native business model. Custodia had filed a lawsuit claiming that eligible depository institutions should be entitled to a primary account as a matter of law, but its claims were not supported in the courts at all levels. (The Block)
