# Custodia Asks Supreme Court to Review Federal Reserve Master Account Ruling

By Riza Dagoc

Canonical URL: https://www.tokenpost.com/news/regulation/47186
Published: 2026-11-03T02:43:33.000Z
Updated: 2026-11-03T02:43:33.000Z
Section: Regulation

> Custodia says a 1980 law requires Fed services for eligible nonmember banks. The justices have the case set for a Nov. 13 conference.

Custodia Bank has asked the U.S. Supreme Court to review a decision on access to Federal Reserve payment accounts, a dispute over whether eligible nonmember banks can be denied direct access to Fed services.

Custodia filed a reply brief Oct. 28 in Custodia Bank, Inc. v. Federal Reserve Board of Governors, docket No. 26-62. The bank filed its petition for review July 10. The justices have the case set for a Nov. 13 conference to consider the petition; they have not agreed to hear it.

Custodia argues that the Monetary Control Act of 1980 requires Federal Reserve services to be made available to eligible banks outside the Federal Reserve System. The Federal Reserve Board and the Federal Reserve Bank of Kansas City say the Federal Reserve Act gives regional Reserve Banks discretion over whether to accept deposits. They asked the justices to deny review.

The parties also dispute what the appeals court decided. Custodia characterizes the ruling as giving Reserve Banks discretion without meaningful limits. The federal respondents say the panel recognized some discretion but did not resolve how far it extends or whether courts can review account denials.

A master account is an account a financial institution holds at one of the Federal Reserve’s 12 regional banks. It gives the institution a direct route to Fed payment services, including wire transfers, check clearing and settlement. Without an account, an institution can reach payment functions through another bank or a private provider.

Custodia applied for an account at the Kansas City Fed in October 2020. The bank denied the application in January 2023, citing risks it associated with Custodia’s crypto-focused business model. A separate Federal Reserve Board decision on Custodia’s application to join the Federal Reserve System is not part of this case.

On Oct. 31, 2025, the U.S. Court of Appeals for the 10th Circuit affirmed the lower court’s ruling for the Federal Reserve. Judge Timothy M. Tymkovich dissented, arguing that the 1980 law requires access for eligible nonmember institutions. The full appeals court denied rehearing on March 13, 2026. The Supreme Court’s Nov. 13 conference is the next listed step.