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Blockchain Association urges Supreme Court to review Custodia Fed access
The group argues the Fed’s denial of Custodia’s master account could let regulators quietly “debank” digital asset firms by restricting payments system access.
The Blockchain Association has filed an amicus brief supporting Custodia Bank’s request that the U.S. Supreme Court review a dispute with the Federal Reserve over a Federal Reserve “master account,” according to Decrypt.
Custodia, a Wyoming crypto bank offering services including digital asset custody, payments and settlement infrastructure, and dollar-backed stablecoin related products, is challenging a ruling that upheld the Fed’s denial of its master account application.
The trade group said the case could determine how much power federal regulators have over state chartered banks, warning that a lower court decision in the Fed’s favor provides a way to reduce access for otherwise eligible institutions.
In its filing, the Blockchain Association argued the Fed could use payment system access decisions to further what it called an impermissible policy goal, and it linked the fight to what critics describe as Operation Choke Point 2.0.