Blockchain Association Backs Custodia in Supreme Court Fight Over Fed Access

The Blockchain Association has urged the US Supreme Court to hear Custodia Bank’s case against the Federal Reserve, which denied the crypto focused bank a master account for direct access to its payment system. In a brief filed Wednesday, the group argued federal law requires the Fed to offer payment services to eligible nonmember banks, rejecting claims that it has broad discretion to deny access. The association tied the case to alleged crypto debanking under “Operation Choke Point 2.0,” saying regulators discouraged banks from serving digital asset firms.

Long Legal Road for Custodia

Custodia, a Wyoming chartered bank, first applied for a master account in 2020. The Kansas City Fed denied the request in 2023, and the Tenth Circuit Court of Appeals upheld that decision in March, leaving the Supreme Court as its last option.

Other Crypto Firms Gain Banking Ground

Meanwhile, other crypto companies are making progress with regulators. Kraken secured a limited Fed master account in March, while Coinbase and Circle won OCC trust charters. Payward, Ripple, BitGo, Fidelity Digital Assets and Paxos have pursued similar approvals.