Crypto Bank Custodia Urges Supreme Court to End ‘Tyranny’ of Federal Reserve

Custodia Bank has filed a reply brief asking the U.S. Supreme Court to review a 10th Circuit ruling that upheld regional Federal Reserve banks' authority to deny master accounts to eligible institutions, a case the crypto-focused bank frames as a challenge to what it calls the Fed's "tyranny." Master accounts give institutions direct access to Fed payment rails, and Custodia's denial has kept the Wyoming-chartered, crypto-focused bank reliant on intermediaries since the Kansas City Fed rejected its application. The dispute centers on whether regional Fed banks have discretion to refuse master accounts to state-chartered, federally insured institutions like Custodia, with broader implications for how crypto-adjacent banks access the U.S. banking system. Custodia's earlier application was denied despite meeting statutory eligibility criteria, prompting litigation that has drawn attention from other specialty banks and fintechs watching the boundary between state banking charters and federal payment access. A Supreme Court decision to grant certiorari would set up a direct clash over Fed discretion versus statutory eligibility, while a denial would leave the 10th Circuit's precedent intact and push Custodia back to legislative or regulatory remedies. Watch for the Court's cert decision and any amicus filings from banking trade groups or crypto industry participants.