Key Notes

The appeals court rejected Custodia's interpretation that Federal Reserve services must be provided, finding discretionary authority prevails over mandatory language.

Judge Tymkovich's dissent warned the ruling grants unreviewable executive power to unappointed officials, raising constitutional concerns under the Appointments Clause.

The Federal Reserve denied Custodia's application in January 2023 after a 27-month review, citing novel risks from its cryptocurrency business model.

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 th

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