{"id":75280,"date":"2026-07-12T04:31:38","date_gmt":"2026-07-12T04:31:38","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/custodia-petitions-the-supreme-court-in-6-year-fight-against-the-fed\/"},"modified":"2026-07-12T04:31:38","modified_gmt":"2026-07-12T04:31:38","slug":"custodia-petitions-the-supreme-court-in-6-year-fight-against-the-fed","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/custodia-petitions-the-supreme-court-in-6-year-fight-against-the-fed\/","title":{"rendered":"Custodia Petitions the Supreme Court in 6-Year Fight Against the Fed"},"content":{"rendered":"<p><b>(Originally posted on : Bitcoin News )<\/b><br \/>\n<\/p>\n<div>\n<div class=\"@container mb-[25px] rounded-sm overflow-clip py-0.5 pr-0.5 pl-2.5 bg-success-100\">\n<div class=\"flex flex-col gap-m overflow-clip rounded-[6px] !bg-success-10 p-3 @[420px]:p-m\">\n<h2 class=\"m-0 flex items-center gap-s text-[19px] !text-[#1c1c1c] md:text-[20px]\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"16\" height=\"10\" viewbox=\"0 0 16 10\" fill=\"none\" class=\"shrink-0 text-success-100\" aria-hidden=\"true\"><path d=\"M1 1.5h14\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><path d=\"M1 8.5h10\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><\/svg><span>Key Takeaways<\/span><\/h2>\n<ul class=\"m-0 flex list-none flex-col gap-m pl-0\">\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Custodia petitioned the Supreme Court, challenging the Fed\u2019s unchecked power to deny vital master accounts.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">The Fed blocked Custodia\u2019s master account in 2023, threatening the survival of innovative financial models.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">The Supreme Court will review the petition in October, potentially altering state and federal banking rules.<\/span><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<h2>Custodia Bank Files Certiorari to Put Regional Federal Reserve Banks in Check<\/h2>\n<p>One of the longest <a href=\"http:\/\/www.bitcoin.com\/get-started\/a-quick-introduction-to-crypto\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">crypto<\/a> banking sagas might be coming to an end, as Custodia Bank is now taking its fight to the higher echelons of the U.S. legal system.<\/p>\n<p>The bank has filed a certiorari petition to the Supreme Court to ascertain the level of power that Federal Regional Bank presidents have to manage the approval of master accounts. Master accounts are essential for financial institutions, as they enable them to move funds on central bank rails, taking advantage of the Federal Reserve\u2019s suite of services, including Fedwire, FedNow, and FedACH.<\/p>\n<p> <a href=\"http:\/\/www.bitcoin.com\/get-started\/a-quick-introduction-to-crypto\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">Crypto<\/a> in America host Eleanor Terrett <a href=\"https:\/\/x.com\/EleanorTerrett\/status\/2075642547276280283?s=20\" target=\"_blank\" rel=\"noopener noreferrer\">highlighted<\/a> that Custodia Bank has hired law firm Davis Polk to lead this effort, stressing that the continuous denial of a master account <strong>\u201cworks a fundamental shift in the balance between state and federal authority over banking,\u201d<\/strong> calling into question the power levels of the Federal Reserve Bank presidents and also affecting the feasibility and business models of other innovative financial institutions.<\/p>\n<p>The filing argues that the Fed\u2019s decisions might constitute an \u201cabuse of authority,\u201d stressing that the case <strong>\u201cpresents an exceptionally important question: whether regional Federal Reserve Bank presidents possess unbounded, unreviewable discretion to deny disfavored banks access to the Federal Reserve\u2019s payment services.\u201d<\/strong><\/p>\n<p>Custodia Bank was denied access to a master account in 2023, with the Federal Reserve Board stating that <strong>\u201cthe firm\u2019s novel business model and proposed focus on crypto-assets presented significant safety and soundness risks.\u201d<\/strong><\/p>\n<p>The bank appealed this decision to the 10th Circuit Court of Appeals. Ultimately, the court <a href=\"https:\/\/news.bitcoin.com\/court-dismisses-custodia-banks-challenge-against-federal-reserve\/\">sided<\/a> with the Federal Reserve Bank of Kansas City in 2024, meaning this might be the last action in the bank\u2019s 6-year legal battle to become a federally chartered institution.<\/p>\n<p>The Supreme Court will decide whether to consider this case in October.<\/p>\n<\/p><\/div>\n<p><a href=\"https:\/\/news.bitcoin.com\/the-ultimate-banking-battle-custodia-petitions-the-supreme-court-in-6-year-fight-against-the-fed\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : Bitcoin News ) Key Takeaways Custodia petitioned the Supreme Court, challenging the Fed\u2019s unchecked power to deny vital master accounts. The Fed blocked Custodia\u2019s master account in 2023, threatening the survival of innovative financial models. The Supreme Court will review the petition in October, potentially altering state and federal banking rules. [&hellip;]<\/p>\n","protected":false},"author":15,"featured_media":75281,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[32],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/75280"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=75280"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/75280\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/75281"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=75280"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=75280"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=75280"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}