Custodia Bank Seeks Supreme Court Review Over Federal Reserve Master Account Dispute

Custodia Bank is taking its fight against the Federal Reserve to the US Supreme Court. The bank, which specializes in digital assets, has been denied a master account by the Fed due to concerns over safety and soundness.

A divided 10th Circuit panel ruled that Reserve Banks retain discretion over master account access, with a 7-3 vote denying en banc rehearing. Custodia is now seeking Supreme Court review, arguing that the Monetary Control Act of 1980 requires equal payment access to eligible nonmember institutions.

The outcome of this case will have significant implications for fintech firms and crypto-native banks seeking direct access to Fedwire and ACH. If the Supreme Court rules in favor of Custodia, it could limit the Federal Reserve's ability to deny master accounts.