Back
Custodia asks Supreme Court to review Fed master account discretion

Custodia asks Supreme Court to review Fed master account discretion

The Wyoming crypto bank says regional Federal Reserve Banks should not have unchecked authority to deny master accounts, after the Kansas City Fed rejected its application and the Tenth Circuit upheld that decision.

Fact Check
The Supreme Court docket (No. 25A1320) confirms Custodia's cert-track litigation and an extension to file by July 10, 2026, matching the collection date. Yahoo Finance and CryptoBriefing corroborate the extension and the core question of regional Fed Bank discretion over master accounts, and Banking Dive confirms cert petition was the remaining option after rehearing was denied. The linked Eleanor Terrett post reports the petition was filed on July 10, 2026. All elements of the claim—Custodia as a Wyoming crypto bank, the certiorari petition, and the master account discretion question—are supported. The only slight uncertainty is confirming the filing was completed rather than pending, but the deadline date, the extension record, and the July 10 report align.
Summary

Custodia Bank has asked the U.S. Supreme Court to review its fight over access to a Federal Reserve master account, arguing that regional Federal Reserve Banks should not have unreviewable discretion to deny direct access to central bank payment services. The Wyoming bank's petition follows the Federal Reserve Bank of Kansas City's 2023 rejection of its 2020 application, which the Federal Reserve Board said was driven by safety and soundness concerns tied to Custodia's novel business model and proposed focus on crypto-assets. The Tenth Circuit upheld that decision in 2024. Custodia argues the dispute raises a broader question about the balance between state and federal authority over banking and about whether disfavored institutions can be excluded from services such as Fedwire, FedNow and FedACH. The Supreme Court is expected to decide in October whether it will hear the case.

Terms & Concepts
  • certiorari petition: A formal request asking the U.S. Supreme Court to review a lower court decision.
  • master account: An account at a Federal Reserve Bank that gives a bank direct access to payment and reserve services.
  • Fedwire: A Federal Reserve payment service used by financial institutions to transfer funds in real time.