Custodia Bank has petitioned the U.S. Supreme Court for review in its long-running fight over access to a Federal Reserve master account. The filing asks the court to determine whether the head of a regional Federal Reserve bank has the authority to deny master account services to an institution.
Custodia had applied multiple times for a Fed master account and was denied in 2023. The Federal Reserve said the bank’s novel business model and its planned focus on crypto assets posed significant safety and soundness risks. After that decision, Custodia appealed to the U.S. Court of Appeals for the Tenth Circuit, which sided with the Federal Reserve Bank of Kansas City in 2024.
The Supreme Court is expected to decide in October whether it will take up the case. The update was cited by Odaily, which referenced Bitcoin.com News as the source.
Custodia Bank has filed a petition for review with the U.S. Supreme Court, seeking a ruling on whether the head of a regional Federal Reserve bank can deny an institution access to a master account.
Custodia had applied several times for a Federal Reserve master account and was rejected in 2023. The Federal Reserve said the bank’s novel business model and its planned focus on crypto assets created significant safety and soundness risks.
Custodia then appealed to the U.S. Court of Appeals for the Tenth Circuit. In 2024, that court backed the Federal Reserve Bank of Kansas City. The Supreme Court is set to decide in October whether it will hear the case.
The update was attributed to Bitcoin.com News.
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