Crypto Bank Custodia Bank Petitions U.S. Supreme Court to Review Federal Reserve Account Denial

CoinFeed July 11 news, according to Bloomberg, crypto bank Custodia Bank has filed a petition with the U.S. Supreme Court, requesting review of its case of being "illegally denied access to the Federal Reserve payment system." Custodia applied to the Kansas City Fed for a master account in 2020, but the Federal Reserve denied it in 2023 on the grounds that its "business model is concentrated in cryptoasset-related activities." Custodia filed a lawsuit, but the Tenth Circuit Court of Appeals upheld the Federal Reserve's decision. Custodia stated in the petition that the case raises "extremely important questions"—whether regional Federal Reserve banks can override state bank chartering decisions by denying central bank payment services.