Encryption bank Custodia has once again lost in its bid for a Fed master account.

According to a report by CoinDesk on November 1, the Tenth Circuit Court of Appeals ruled that the cryptocurrency bank Custodia lost its case, rejecting its application for a master account with the Fed. This is yet another setback for the company in its years-long legal battle. The court stated in its ruling that the clear language of the relevant statutory provisions grants the Fed the discretion to deny master account applications from qualified entities.

Custodia sued the Fed in 2022, initially claiming that the Fed took too long to evaluate its master account application, and later amended the lawsuit after the Fed rejected its application. Custodia argued that the Fed did not have the legal authority to deny the master account application, but a federal judge ruled last year that the Fed is not required to grant a master account to every eligible depository institution.

Custodia indicates that it is actively considering applying for a rehearing with the Tenth Circuit Court. Previously, Fed governor Chris Waller suggested that the central bank could design a “streamlined master account” to provide access to payment systems for encryption companies.