Custodia Bank Files Petition to Supreme Court Over 6-Year Fed Master Account Dispute

According to ChainCatcher, Custodia Bank has filed a petition with the U.S. Supreme Court seeking to clarify whether regional Federal Reserve bank presidents have the authority to deny master account services to institutions. The dispute stems from the Federal Reserve's 2023 rejection of Custodia's application, citing concerns over its new business model and focus on crypto assets. Custodia appealed to the U.S. Court of Appeals for the Tenth Circuit in 2024, but the court upheld the Kansas City Federal Reserve Bank's decision. The Supreme Court will decide whether to hear the case in October.
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