Federal Reserve Banks have the power to decide who can have master accounts, which allow direct access to the U.S. money supply. Custodia Bank recently filed an appeal after a Wyoming court ruled that they did not have the right to a Federal Reserve master account.

The dispute between Custodia Bank and the Federal Reserve has been ongoing, and now Custodia's lawyers have filed a notice of appeal in the U.S. District Court for the District of Wyoming. This legal action is in response to the court's decision that Custodia Bank cannot have a master account with the Federal Reserve.

According to Judge Scott Skavdahl's ruling in March, only financial institutions with master accounts have direct access to the U.S. money supply and the Federal Reserve's payment systems. Without these accounts, institutions must rely on partner banks to access services.

Custodia Bank applied for a master account with the Kansas City Fed in 2020, led by Caitlin Long. However, the Federal Reserve Board of Governors delayed the decision-making process. After Custodia sued the Federal Reserve in 2022 for the delayed decision on their application, the request for a master account was ultimately denied in January 2023.