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Custodia Bank Petitions U.S. Supreme Court Over Federal Reserve Account Access Denial on July 11

Enforcement Actions Regulation & Policy

2026-07-11 00:07:35

According to Bloomberg, crypto bank Custodia Bank filed a petition with the U.S. Supreme Court on July 11 to review its case challenging the Federal Reserve's 2023 denial of access to its payment system. Custodia applied for a master account with the Kansas City Federal Reserve in 2020, but the Fed rejected the request citing the bank's focus on crypto asset-related activities. After the Tenth Circuit Court of Appeals upheld the denial, Custodia argued the case raises a critical constitutional question: whether regional Federal Reserve banks can veto state-chartered bank decisions by denying access to central banking services. The Supreme Court is expected to decide whether to take the case after its October recess.

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