Custodia Bank seeks more time to challenge Fed master account denial at Supreme Court

Custodia Bank, the Wyoming-chartered digital asset bank led by Caitlin Long, is seeking a 30-day extension of time, until July 10, 2026, to file a petition for certiorari challenging the Tenth Circuit’s decision in its long-running dispute with the Federal Reserve, according to a recent filing.

The Tenth Circuit held that regional Reserve Banks have discretionary authority to deny master accounts, a ruling Custodia says contradicts the Monetary Control Act’s mandate that services “shall be available” to eligible nonmember banks.

The request cites the complexity of the issue and counsel’s other pending deadlines as reasons for the additional preparation time.

A long road to the highest court

Custodia, a Special Purpose Depository Institution focused on digital assets, first applied for a Fed master account in October 2020. A master account is essentially a bank’s ticket to the Fed’s payment rails, the infrastructure that lets financial institutions move money, settle transactions, and interact with the banking system.

The Fed said no in January 2023, citing concerns about digital asset risks tied to Custodia’s crypto-focused business model.

Custodia didn’t take it quietly. The bank had actually sued the Fed Board months earlier, in June 2022, arguing that the Fed lacked authority to reject an application from a statutorily eligible depository institution.

The Wyoming federal district court ultimately ruled against Custodia in 2024 on the merits of the case. The 10th Circuit Court of Appeals affirmed that decision on October 31, 2025, in a 2-1 panel decision. On March 13, 2026, the 10th Circuit denied Custodia’s petition for en banc rehearing by a vote of 7-3.

The Kraken variable

In March 2026, Kraken was granted a limited master account, providing an alternative pathway into the Fed’s payment infrastructure for a crypto-adjacent entity. This is not full Tier 3 access but a “skinny” account with restricted capabilities.