Custodia Gets Extension to File Supreme Court Appeal

Justice Neil Gorsuch granted Custodia Bank an extension to file a petition asking the U.S. Supreme Court to review the Federal Reserve’s denial of a master account, setting a new filing deadline of July 11, 2026. The extension appears on Supreme Court docket 25A1320.

Custodia Bank, 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. Federal Reserve officials denied the application in January 2023, citing safety and soundness concerns tied to Custodia’s crypto-focused business model.

A three-judge panel of the U.S. Court of Appeals for the Tenth Circuit ruled 2-1 in October 2025 that Reserve Banks have discretion to decide which institutions receive master accounts, interpreting the Federal Reserve Act to give the Fed that authority. Custodia asked the full Tenth Circuit for rehearing; an en banc petition was rejected in March 2026 by a 7-3 vote, after which the bank sought Supreme Court review.

The central legal question concerns the Monetary Control Act of 1980. Custodia argues the statute requires Reserve Banks to provide equal payment access to eligible nonmember institutions and that the Fed’s denial conflicts with that obligation. The Federal Reserve contends the statute governs pricing and the provision of services once an institution is served, not an affirmative right to obtain a master account. Several banking trade groups filed amicus briefs in the lower courts supporting the Fed’s interpretation.

Custodia is represented before the Supreme Court by Kannon K. Shanmugam of Davis Polk. If Custodia files a petition, the Supreme Court will decide whether to grant review after receiving the filing. If the Court declines review, the Tenth Circuit’s ruling that Reserve Banks have broad discretion over master-account access will remain in place.