Blockchain Association Seeks Supreme Court Review Over Fed’s Denial of Custodia Bank Access
### SUMMARY
The Blockchain Association has filed an amicus brief with the US Supreme Court, supporting Custodia Bank’s challenge to the Federal Reserve’s decision to deny it a master account that would provide direct access to the Fed’s payment system. The association argues federal law mandates the central bank make its services available to eligible non-member banks and contends the Fed should not have broad discretion in denying access.
The Independent Community Bankers of America (ICBA), an opponent of crypto companies seeking benefits without full regulatory framework, has also expressed support for Custodia’s case. The denial leaves the Supreme Court as the only remaining avenue for review after the Tenth Circuit Court of Appeals ruled in favor of the regional Fed bank’s discretion to reject requests earlier this year.
Custodia Bank, a Wyoming-chartered crypto-focused bank that applied for a Fed master account in 2020, now seeks judicial intervention to assert its right to participate fully in the Fed’s payment system. The Blockchain Association believes federal law requires the central bank to make available the services essential for state-chartered banks serving the burgeoning cryptocurrency industry.
This dispute centers on whether federal law mandates full access for state-chartered banks in the crypto sector, a point of contention that could have broader implications for financial regulation and innovation in digital currencies.
Written by Kate Hollinsworth
Economics Desk
