Wyoming Crypto Bank Seeks Full Court Review in Fed Account Dispute

Custodia Bank, a Wyoming-chartered crypto institution, has escalated its legal battle with the Federal Reserve by petitioning the Tenth Circuit Court of Appeals for an en banc review. The move challenges a October panel decision that upheld the Fed's denial of a master account—a critical banking access point for cryptocurrency firms.

The bank's December 15 filing argues the ruling creates constitutional concerns by granting regional Fed banks unchecked discretion over legally eligible institutions. Custodia contends this undermines both the Monetary Control Act and Wyoming's authority to charter special-purpose depository institutions—a key innovation in crypto banking regulation.

This five-year conflict now tests the boundaries between state banking sovereignty and federal oversight. The outcome could set precedents affecting how cryptocurrency firms access payment systems nationwide, with implications for institutional adoption of digital assets.