Custodia Financial institution has secured further time to carry its dispute with the Federal Reserve earlier than the US Supreme Court docket. Justice Neil Gorsuch granted the financial institution’s movement for an extension of time to file its certiorari petition.
The Wyoming-chartered digital asset financial institution now has till July 11, 2026, to file its attraction. The petition challenges the Federal Reserve’s denial of a grasp account, per Supreme Court docket docket 25A1320.
Background to the Fed Account Denial
Custodia, based by Caitlin Lengthy, utilized for a Kansas Metropolis Fed grasp account in October 2020.
The Fed formally denied the applying in January 2023. Officers cited security and soundness issues tied to the crypto-focused enterprise mannequin.
A divided tenth Circuit panel dominated 2-1 in October 2025 that Reserve Banks retain discretion over grasp account entry.
The choice interpreted the Federal Reserve Act as granting the Federal Reserve authority to approve or deny eligible establishments.
A 7-3 vote denied en banc rehearing in March 2026, prompting Custodia to hunt Supreme Court docket evaluate.
What a Supreme Court docket Evaluation Would Determine
At stake is the Financial Management Act of 1980. Custodia argues it requires Reserve Banks to offer equal fee entry to eligible nonmember establishments.
The Fed counters that the statute addresses pricing as soon as providers are supplied, not entitlement to accounts. Banking commerce teams have supported the Fed’s studying in amicus filings earlier than the decrease courts.
A Supreme Court docket choice in Custodia’s favor might restrict the Fed’s potential to disclaim grasp accounts to statutorily eligible establishments.
The end result would carry implications for fintech companies and crypto-native banks searching for direct entry to Fedwire and ACH.
A denial of certiorari would as a substitute affirm the Federal Reserve’s broad authority over fee system entry.
Custodia is represented by Kannon Ok. Shanmugam of Davis Polk.
Whether or not the Court docket grants evaluate stays unsure, given the excessive bar that statutory interpretation instances face.
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