In brief
- A federal appeals court affirmed the Fed’s ability to deny crypto bank Custodia a master account.
- Custodia had argued the Fed had no choice but to award a master account to eligible banks. The Fed said it could deny Custodia an account based on the risk posed by crypto activity.
- Custodia said it may seek a rehearing. Potential Fed leadership changes could shift policy on crypto banks in the meantime.
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…
