Custodia Gains Extra Time to Seek Supreme Court Review

Supreme Court Justice Neil Gorsuch granted Custodia Bank an extension to file a petition asking the court to review the Federal Reserve’s denial of a master account. The new deadline to seek review is July 11, 2026.

Custodia, a Wyoming-chartered digital asset bank founded by Caitlin Long, applied to the Federal Reserve Bank of Kansas City for a master account in October 2020. The Fed issued a formal denial in January 2023, citing safety and soundness concerns tied to Custodia’s crypto-focused business model.

Custodia contends the Monetary Control Act of 1980 requires Reserve Banks to provide equal access to payment services for statutorily eligible nonmember institutions and asks the high court to decide whether the Fed may deny accounts to such banks. The Federal Reserve argues the statute governs pricing and terms after services are provided, not an entitlement to obtain an account. Banking trade groups filed amicus briefs supporting the Fed’s interpretation in the lower courts.

A divided panel of the 10th U.S. Circuit Court of Appeals ruled 2-1 in October 2025 that Reserve Banks have discretion to approve or deny master accounts. The court read the Federal Reserve Act as giving the Fed authority over which institutions gain access to Fed payment systems. An attempt to rehear the case en banc was rejected by a 7-3 vote in March 2026. The matter is listed under Supreme Court docket 25A1320.

Custodia is represented before the Supreme Court by Kannon K. Shanmugam of Davis Polk. If the Justices accept the petition, they would address whether eligible institutions are entitled to master accounts under federal law. If the Court declines review, the 10th Circuit’s ruling that the Fed has broad discretion would remain in place.

The extension granted by Justice Gorsuch only lengthens the period for Custodia to file its certiorari petition; it does not indicate whether the Supreme Court will take the case.