Justice Neil Gorsuch on Friday gave Custodia Bank until July 11, 2026, to file its certiorari petition challenging the Federal Reserve's refusal to grant the crypto-focused bank a master account. The extension pushes the next big deadline in a legal battle that started in 2020 and could reshape how the Fed handles access to its payment rails for fintech and crypto firms.
The road to the Supreme Court
Custodia first applied for a master account with the Kansas City Fed in October 2020. The Fed formally denied the application in January 2023, citing safety-and-soundness concerns tied to the bank's crypto-heavy business model. Custodia sued, and the case wound through the 10th Circuit, where a divided panel ruled 2–1 in October 2025 that Reserve Banks have discretion over master account access. The court read the Federal Reserve Act as giving the Fed authority to approve or deny eligible institutions.
En banc rehearing was denied by a 7–3 vote in March 2026. That set Custodia on a path to the Supreme Court.
The core legal dispute
At the heart of the case is the Monetary Control Act of 1980. Custodia argues the law requires Reserve Banks to provide equal payment access to eligible nonmember institutions. The Fed counters that the Act only addresses pricing once services are provided — not a guarantee of access itself. Banking trade groups have backed the Fed's reading in amicus filings before the lower courts.
If the Supreme Court takes the case and rules in Custodia's favor, it could limit the Fed's ability to deny master accounts to statutorily eligible institutions. That would open the door for more fintech firms and crypto-native banks to tap directly into Fedwire and ACH.
What's at stake for crypto banking
A master account is the key that unlocks direct access to the Federal Reserve's payment systems. Without one, banks must rely on correspondent banks, adding cost and delay. For a crypto-focused bank like Custodia, that friction has been a central operational hurdle since its founding. A win at the Supreme Court wouldn't just help Custodia — it would set a precedent that could force the Fed to treat eligible institutions more evenly.
The Fed has long argued it needs discretion to protect the payment system from risk. The 10th Circuit agreed. But the Supreme Court could see it differently, especially if it finds the Monetary Control Act's language clearer than the Fed's current policy allows.
The July 11 deadline
Custodia now has until July 11 to file its cert petition. Justice Gorsuch oversees the 10th Circuit and granted the extension without comment. Custodia is represented by Kannon K. Shanmugam of Davis Polk, a veteran Supreme Court litigator. The Fed has not yet responded publicly to the extension. Whether the justices grant review will depend on how they view the circuit split — or the lack of one — and the importance of the payment-access question for the broader financial system.
