Custodia Bank requests the U.S. Supreme Court to review the Federal Reserve's account denial case

According to Bloomberg, the crypto bank Custodia Bank has submitted a petition to the U.S. Supreme Court, requesting a review of its case regarding "being unlawfully denied access to the Federal Reserve payment system." Custodia applied for a master account access with the Kansas City Fed in 2020, but the Federal Reserve denied it in 2023 on the grounds that its "business model focuses on activities related to crypto assets."

Custodia filed a lawsuit, but the Tenth Circuit Court of Appeals upheld the Federal Reserve's decision. In the petition, Custodia stated that the case raises "extremely important questions"—whether regional Federal Reserve banks can veto state bank charter decisions by denying access to central bank payment services.

Custodia founder and CEO Caitlin Long stated that Wyoming has created a crypto-friendly environment through dozens of laws, but the Kansas City Fed chair "disagrees with Wyoming's policy choices." The Supreme Court will decide whether to hear the case after the October recess.