Custodia Bank requests the US Supreme Court to review the Federal Reserve account rejection case

According to Bloomberg, Custodia Bank has submitted a petition to the US Supreme Court, requesting a review of the case concerning its denial of access to the Federal Reserve's payment system. Custodia Bank applied for a master account in 2020, but the Federal Reserve rejected the application in 2023, citing the institution’s business model being focused on crypto asset-related activities. The Tenth Circuit Court of Appeals upheld the Federal Reserve’s decision. In its petition, Custodia Bank requests the Court to examine whether regional Federal Reserve Banks can override state bank charter decisions by denying access to central bank payment services.