Blockchain Association urges review of Custodia Bank’s master account denial

The Blockchain Association has backed Custodia Bank’s Supreme Court petition challenging the Federal Reserve’s refusal to grant the Wyoming-chartered digital asset bank direct access to its payment system. Summary The Blockchain Association has backed Custodia Bank’s Supreme Court challenge over the Fed’s denial of master account access. Custodia is asking the court to decide whether regional Fed banks can reject master accounts for eligible state chartered institutions. The industry group warned that the lower court rulings could give federal regulators unchecked power to restrict banking access for lawful industries. Custodia has pursued a Fed master account since 2020 after the Kansas City Fed denied its application in 2023. The Kansas City Fed is due to respond to Custodia’s Supreme Court petition by Sept. 11. According to a Wednesday amicus filing, the Blockchain Association asked the U.S. Supreme Court to review whether regional Federal Reserve Banks can deny master accounts to state-chartered institutions that are legally eligible to request access. The dispute centers on the authority regional Fed banks have when deciding which institutions can connect directly to central b...