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Blockchain Association Backs Custodia in Fed Account Fight
The crypto lobbying group filed an amicus brief as Custodia takes its Fed account denial to the Supreme Court, setting up a key precedent for bank-like access.
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The Blockchain Association has filed an amicus brief supporting Custodia Bank in its Supreme Court petition against the Federal Reserve. The crypto lobbying group argues the Fed overstepped by denying Custodia a master account, a decision that could shape access to central bank services for digital-asset firms.
Custodia, a Wyoming-chartered bank, first applied for a Fed master account in 2020. Such accounts let institutions tap the Fed's payment system directly, earn interest on reserves, and access emergency lending. The Kansas City Fed rejected the application, citing "undue risk" tied to crypto operations. Custodia sued, arguing the Fed is legally required to grant master accounts to eligible depository institutions. Lower courts sided with the Fed, ruling that regional reserve banks have discretion.
The Supreme Court petition is the latest step in a multiyear legal battle. The Blockchain Association's brief frames the case as a test of unchecked federal power over banking access. "The Fed's denial sets a dangerous precedent," the group said in the filing.