Crypto bank Custodia has reached the end of its years-long legal fight over access to the Federal Reserve's payment rails — and it lost.

Final appeal rejected 7-3

The full U.S. Court of Appeals for the 10th Circuit voted 7-3 on March 13, 2026, to decline Custodia's petition for an en banc rehearing. The Wyoming-chartered bank, founded by Caitlin Long, had spent years attempting to force the Fed to grant it a master account — direct access to the central bank's payment infrastructure that eliminates costly intermediaries.

The original application was rejected by the Fed in 2024. Subsequent court challenges upheld the Fed's discretion over who receives such accounts. This final en banc denial closes Custodia's last formal legal avenue.

One of the three dissenting judges, Timothy Tymkovich, warned that the majority's ruling placed the court "on the wrong side of the statutes and, likely, that of the Constitution." He called the case "exceptionally important" given its implications for the state-federal balance in banking regulation.

The ironic timing

The ruling arrived just days after the Federal Reserve Bank of Kansas City quietly extended a limited master account to Kraken — making the crypto exchange the first digital-asset firm to receive any form of direct Fed access. While not a full master account, the arrangement carries most of its benefits.

The Fed is also drafting a nationwide framework for so-called "skinny" master accounts aimed at non-traditional financial institutions, though that process is still in early stages.

Custodia representatives did not comment on the ruling. A person familiar with the situation said the bank is still pursuing access through other means.