According to @EleanorTerrett, the Federal Reserve has withdrawn its 2023 guidance that effectively blocked uninsured banks from becoming Fed members and engaging in crypto activities (source: @EleanorTerrett). The same guidance underpinned the Fed’s denial of Custodia Bank’s master account, putting renewed focus on regulatory access for uninsured, crypto-focused banks and potential implications for U.S. crypto banking rails (source: @EleanorTerrett).

According to Eleanor Terrett, Wyoming-based Custodia Bank has filed a petition for rehearing en banc asking the full Tenth Circuit to reconsider its October decision that sided with the Federal Reserve in denying Custodia a master account, extending the legal battle over direct access to Fed payment services. Source: Eleanor Terrett on X, Dec 16, 2025. A Federal Reserve master account provides a depository institution with direct access to payment and settlement services such as Fedwire and reserve account services, which directly affects a bank’s ability to provide fiat rails to clients. Source: Federal Reserve, Account Services and Master Accounts overview. En banc rehearing is not favored and is reserved for questions of exceptional importance or to maintain decisional uniformity under Federal Rule of Appellate Procedure 35, indicating a high bar for reconsideration. Source: Federal Rules of Appellate Procedure 35. For traders, this proceeding is a key regulatory risk indicator for U.S. crypto banking access and fiat on/off-ramp reliability, so monitoring whether the Tenth Circuit grants or denies en banc review can help assess counterparty and liquidity risks tied to bank-integrated crypto services. Source: Federal Reserve Financial Stability Report, May 2023; Eleanor Terrett on X, Dec 16, 2025.

According to Eleanor Terrett, Governor Chris Waller announced at the Federal Reserve Payments Innovation Conference that the Fed is proposing a limited-access master account, termed a skinny master account, to provide all legally eligible institutions direct access to the Fed’s payments rails without relying on partner banks; source: Eleanor Terrett, X, Oct 21, 2025. According to Eleanor Terrett, the skinny master account would not include services available to full master accounts such as borrowing from the Fed, and it would not change existing legal eligibility rules; source: Eleanor Terrett, X, Oct 21, 2025. According to Eleanor Terrett, the framework would allow the Fed to green-light innovative banks including fintechs, stablecoin issuers, and other payments companies for this limited-access account; source: Eleanor Terrett, X, Oct 21, 2025. According to Eleanor Terrett, firms specifically highlighted as beneficiaries include Custodia Bank and Kraken, with potential expedited access for Ripple (XRP) and Anchorage, all of which have sought master accounts or applied this year; source: Eleanor Terrett, X, Oct 21, 2025.

According to Eleanor Terrett, Caitlin Long, CEO of crypto bank Custodia, has joined the board of online marketplace PublicSquare. This move comes as PublicSquare recently announced plans to implement a digital asset treasury strategy, signaling a potential shift toward integrating cryptocurrencies or blockchain technology into its financial infrastructure. The addition of a prominent crypto banking executive suggests that PublicSquare could adopt or hold digital assets such as Bitcoin (BTC) or Ethereum (ETH) as part of its treasury, a development that could influence crypto market sentiment and institutional adoption trends. Source: Eleanor Terrett.