Custodia Bank filed a reply brief asking the U.S. Supreme Court to review a 10th Circuit ruling that upheld the Federal Reserve’s discretion to deny master accounts to otherwise eligible banks. The court has not agreed to hear the case. Custodia says the ruling gives regional Reserve Banks too much power over access to payment services, though it acknowledges there is no direct split between appeals courts.
The dispute turns on the Monetary Control Act of 1980: Custodia argues it requires payment services for any eligible bank, while the Fed argues it requires access for eligible institutions as a class. The Fed rejected Custodia’s application in early 2023, citing concerns about its ability to manage cryptocurrency risks. A federal judge ruled for the Fed, and a divided 10th Circuit panel affirmed that decision.
