Blockchain Association Backs Custodia in Supreme Court Fight Over Fed Access

The Blockchain Association has formally backed Custodia Bank in its Supreme Court fight over direct access to a Federal Reserve master account, adding industry support to one of the most closely watched crypto-banking cases in the U.S. The group filed an amicus brief urging the court to decide whether regional Federal Reserve banks can deny master accounts to otherwise eligible state-chartered institutions.

Custodia’s case centers on whether the Monetary Control Act requires the Fed to provide services to eligible nonmember banks or whether regional Reserve Banks retain discretion to reject applications on risk grounds. Custodia, a Wyoming-chartered digital-asset bank, has argued that the Fed acted unlawfully in denying its account application, while lower courts have so far sided with the central bank.

The Supreme Court petition comes after years of litigation and repeated setbacks for Custodia in the lower courts. Support from the Blockchain Association strengthens Custodia’s position by framing the dispute as a broader issue of fair access to critical financial infrastructure for innovative banks and digital-asset firms.

The Kansas City Fed is expected to respond to Custodia’s petition by Sept. 11, keeping the case on a tight legal timetable. If the Supreme Court agrees to hear it, the ruling could have implications well beyond Custodia, potentially affecting how much discretion regional Fed banks have over access to payment rails.

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