According to Bloomberg, crypto bank Custodia Bank has filed a petition with the U.S. Supreme Court seeking review of its case where it was "unlawfully denied access to the Federal Reserve's payment system." Custodia applied for master account access from the Kansas City Fed in 2020, but the Federal Reserve denied it in 2023, citing its "business model focused on crypto-asset-related activities." Custodia filed a lawsuit, but the Tenth Circuit Court of Appeals upheld the Federal Reserve's decision.
In its petition, Custodia claims the case raises "exceptionally important questions" – whether a regional Federal Reserve bank can override a state bank charter decision by denying access to central bank payment services.[PANews]