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Custodia Bank Petitions U.S. Supreme Court to Review Federal Reserve Account Denial

Enforcement Actions Regulation & Policy

2026-07-12 00:11:42

According to Bloomberg, Custodia Bank has petitioned the U.S. Supreme Court to review its case challenging the Federal Reserve's refusal to grant it access to the central bank's payment system. The crypto bank applied for a master account with the Kansas City Federal Reserve in 2020, but the Fed denied the request in 2023, citing Custodia's business model as concentrated in crypto-related activities. After a federal appeals court upheld the Fed's decision, Custodia argues in its petition that the case raises "issues of exceptional importance," specifically whether regional Federal Reserve banks can effectively veto state banking charter decisions by denying access to central banking services. Custodia founder and CEO Caitlin Long stated that Wyoming has enacted numerous laws to foster a crypto-friendly environment, but the Kansas City Fed's leadership disagreed with Wyoming's policy approach.

Disclaimer: The information on this page may come from third-party sources and is for reference only. It does not represent the views or opinions of Gate and does not constitute any financial, investment, or legal advice. Virtual asset trading involves high risk. Please do not rely solely on the information on this page when making decisions. For details, see the Disclaimer.

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