Custodia Bank, a Wyoming-chartered digital asset bank, has secured an extension until July 11, 2026, to file a certiorari petition with the US Supreme Court, challenging the Federal Reserve's denial of a master account. The dispute originated in October 2020 when Custodia applied for a master account with the Kansas City Fed, which was formally denied in January 2023 over safety and soundness concerns tied to its crypto-focused business model. In October 2025, a divided 10th Circuit panel ruled 2-1 that Reserve Banks retain discretion over master account access, interpreting the Federal Reserve Act as granting the Fed authority to approve or deny eligible institutions. A subsequent 7-3 vote against en banc rehearing in March 2026 prompted Custodia to seek Supreme Court review. The core legal question is whether the Monetary Control Act of 1980 requires Reserve Banks to provide equal payment access to eligible nonmember institutions, or whether the Fed has unlimited discretion to deny accounts. A Supreme Court decision in Custodia's favor could limit the Fed's ability to deny master accounts to statutory eligible institutions, affecting fintech firms and crypto-native banks seeking direct Fedwire and ACH access. Custodia is represented by Kannon K. Shanmugam of Davis Polk. The outcome remains uncertain, with statutory interpretation cases facing a high bar for review.

Key facts

• Custodia Bank granted extension until July 11, 2026 to file Supreme Court certiorari petition.
• Fed denied master account in January 2023 citing crypto-related safety concerns.
• 10th Circuit ruled 2-1 that Reserve Banks have discretion over master account access.
• Monetary Control Act of 1980 at center of dispute over equal payment access.
• Supreme Court decision could impact fintech and crypto-native bank access to Fedwire/ACH.