Custodia Bank has received more time to bring its dispute with the Federal Reserve to the US Supreme Court. Justice Neil Gorsuch granted the bank’s request for an extension of time to file a petition for certiorari.
The Wyoming-chartered digital finance bank now has until July 11, 2026, to file an appeal. The petition challenges the Federal Reserve’s denial of a master account, according to the Supreme Court doc 25A1320.
Introduction to Denying the Fed Account
Custodia, founded by Caitlin Long, applied for a large Kansas City Fed account in October 2020.
The Fed officially rejected the request in January 2023. Officials cited security and regulatory concerns associated with a crypto-focused business model.
A 10th Circuit panel ruled 2-1 in October 2025 that Savings Banks retain discretion in accessing capital accounts.
The decision interpreted the Federal Reserve Act as giving the Federal Reserve authority to approve or reject qualified institutions.
Vote 7-3 denied en banc rehearing in March 2026, which prompted Custodia to ask for a Supreme Court review.
What the Supreme Court Will Decide
Risk and Monetary Control Act of 1980. Custodia they object requires Reserve Banks to provide equal payment opportunities to eligible non-member institutions.
The Fed calculates that the rule controls prices once they are issued, not due to an account. Banking groups have supported the Fed’s calculations in amicus filings before lower courts.
A Supreme Court ruling in favor of Custodia could limit the Fed’s ability to deny large accounts to legally qualified institutions.
The results may have implications for fintech companies and crypto-native banks looking for access to Fdwire and ACH.
The denial of certiorari instead affirms that the Federal Reserve has broad discretion in entering into the payment system.
It’s a guard represented and Kannon K. Shanmugam of Davis Polk.
It is not clear whether the court will grant a general award, given the number of legal interpretation cases.
A note Custodia Bank Fights Fed Master Account in Supreme Court appeared for the first time BeInCrypto.
