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Custodia Bank Petitions Supreme Court to Review Federal Reserve Account Denial

Enforcement Actions Regulation & Policy

2026-07-13 00:13:33

According to Bloomberg, crypto bank Custodia Bank has petitioned the U.S. Supreme Court to review its denial of access to the Federal Reserve payment system. The bank applied for a main account with the Kansas City Federal Reserve in 2020 but was rejected in 2023, with the Fed citing its business model concentration on crypto-related activities. A federal appeals court upheld the Fed's decision in 2024. In its petition, Custodia argues the case raises critical constitutional questions about whether regional Federal Reserve banks can veto state banking charter decisions by denying central bank payment services. The Supreme Court will decide whether to hear the case after its October recess.

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