
The Blockchain Association argues Fed master account rules can squeeze crypto firms, backing Custodia Bank's Supreme Court petition. No cert decision yet.
The Blockchain Association has filed an amicus brief supporting Custodia Bank's Supreme Court petition, arguing that Federal Reserve control over master account access can squeeze crypto-focused firms.
The trade group's filing, announced Wednesday, backs Custodia's petition for certiorari. The bank is asking the high court to review how the Fed decides which institutions get direct access to its payment and settlement system, known as a master account.
A master account lets a bank hold reserves and settle payments directly with the central bank. Without one, an institution must route activity through a correspondent bank, adding cost and dependency.
For digital asset firms, the access question touches custody, fiat on-ramps, and treasury operations. The Blockchain Association frames the denial as a structural constraint on crypto-linked banks, Decrypt reported.
The concern is about a squeeze on options rather than an outright ban. Restrictions at the access level can cascade to partner banks and service providers that crypto companies depend on to reach the traditional financial system.
Custodia's case has become a focal point because banking pathways underpin exchanges, stablecoin issuers, custodians, and infrastructure providers. The association's backing of the petition was confirmed by The Block.
No certiorari decision has been announced. The Supreme Court has not yet said whether it will hear the case.
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