Custodia Bank v. Federal Reserve Board of Governors

── Custodia Bank v. Federal Reserve Board of Governors ── Case No.: 24-8024 Court: Court of Appeals for the Tenth Circuit Date: March 13, 2026 Category: General Appellate Case: 24-8024 Document: 201 Date Filed: 03/13/2026 Page: 1 FILED United States Court of Appeals PUBLISH Tenth Circuit UNITED STATES COURT OF APPEALS March 13, 2026 Christopher M. Wolpert FOR THE TENTH CIRCUIT Clerk of Court _________________________________ CUSTODIA BANK, INC., Plaintiff - Appellant, No. 24-8024 v. (D.C. No. 1:22-CV-00125-SWS) (D. Wyo.) FEDERAL RESERVE BOARD OF GOVERNORS, et al., Defendants - Appellees. ------------------------------ AMERICANS FOR PROSPERITY FOUNDATION-WYOMING, et al., Amici Curiae. _________________________________ ORDER _________________________________ Before HARTZ, TYMKOVICH, BACHARACH, PHILLIPS, McHUGH, MORITZ, EID, CARSON, ROSSMAN, and FEDERICO, Circuit Judges. ∗ _________________________________ This matter is before the court on the Petition for Rehearing En Banc by Custodia Bank, Inc.; the Response to Petition for Rehearing En Banc by Appellee Federal Reserve Board; Defendant-Appellee Federal Reserve Bank of Kansas City’s Response to Petition The Honorable Jerome A. Holmes and the Honorable Scott M. Matheson, Jr. are ∗ recused in this matter.  Appellate Case: 24-8024 Document: 201 Date Filed: 03/13/2026 Page: 2 for Rehearing En Banc; and Appellant’s Motion for Leave to File a Reply Brief in Support of Petition for Rehearing En Banc, which was accompanied by a proposed reply. As an initial matter, Appellant’s motion for leave to file a reply in support of the petition is GRANTED. The Clerk’s Office shall file Appellant’s reply as of the date it was submitted to the court. In addition, the pending motions for leave to file amicus briefs are GRANTED. All amicus briefs submitted in connection with the court’s consideration of whether to grant en banc rehearing will be filed as of the date they were submitted. The petition, responses, and proposed reply were circulated to all non-recused judges of the court who are in regular active service, and a poll was called. The poll did not carry. Consequently, the petition is DENIED. Judges Hartz, Tymkovich and Eid voted to grant en banc rehearing. Judge Tymkovich has filed a separate dissent from the denial of en banc rehearing, which is joined by Judge Eid. Entered for the Court, PER CURIAM 2  Appellate Case: 24-8024 Document: 201 Date Filed: 03/13/2026 Page: 3 No. 24-8024, Custodia Bank, Inc. v. Federal Reserve Board of Governors, et al. TYMKOVICH, Circuit Judge, dissenting from the denial of rehearing en banc. At issue is the critical question of whether Congress has given the Federal Reserve Banks unfettered discretion to deny a state-chartered bank’s master account application. The majority held that it has such power, but I disagree. Without a master account, a bank cannot operate in the modern banking system. By endorsing unreviewable discretion to deny accounts, we effectively hand the Reserve Banks a veto over states’ chartering power. The constitutional ramifications of allowing unappointed bank officials to wi