PANews reported on March 15th that, according to The Block, the U.S. Tenth Circuit Court of Appeals rejected Custodia Bank's request for a full review by a 7-3 vote, upholding the October 2025 panel ruling that the Federal Reserve has the authority to approve or deny master account applications from eligible institutions. It's worth noting that just days earlier, the Kansas City Fed granted Kraken its first limited cryptocurrency master account, and the Fed is also developing a broader "slimmed-down master account" framework.

Custodia, a Wyoming-licensed special purpose depository founded by Wall Street veteran Caitlin Long, first applied for a master account in October 2020. The Federal Reserve Bank of Kansas City confirmed in early 2021 that the application "did not present any material problems," but ultimately rejected it in January 2023, citing concerns about the bank's cryptocurrency-focused business model. Custodia filed a lawsuit in June 2022, initially concerning the 19-month delay in approval, and later arguing that the Money Control Act grants any eligible depository institution the legal right to a master account. The lawsuit was dismissed by courts at all levels.