Overview
- On Thursday the Blockchain Association filed an amicus brief supporting Custodia Bank’s petition for the U.S. Supreme Court to review the Kansas City Fed’s denial of a master account.
- Custodia’s certiorari petition was docketed in mid-July and the Federal Reserve Bank of Kansas City must file its response by September 11, 2026.
- Federal courts so far have sided with regional Reserve Banks, with a district court upholding the denial in March 2024 and the Tenth Circuit refusing an en banc rehearing by a 7-3 vote in March 2026.
- The dispute plays out alongside the Fed’s separate rulemaking that would create limited payment accounts and a March 2026 Kansas City Fed approval of a restricted account for Kraken Financial that excludes interest on reserves and access to Fed lending.
- A Supreme Court decision could resolve whether the Monetary Control Act’s phrase that services “shall be available” prevents regional Reserve Banks from refusing master accounts and could change how crypto-focused and other state banks get access to core U.S. payment rails.