Blockchain Association asks Supreme Court to review Custodia master account denial
Regulation & Gov ·
The crypto trade group filed an amicus brief backing Custodia Bank's petition, arguing a lower court ruling gives the Federal Reserve too much latitude to cut lawful firms off from the banking system.
The filing, submitted on Wednesday, supports Custodia's request that the Supreme Court take up its dispute with the Fed over a master account application, according to Decrypt. A master account would let the Wyoming-based bank settle payments directly with the central bank, something it has pursued for years while offering digital-asset custody, payments infrastructure and stablecoin-related services to institutional clients.
The case turns on an October appeals panel ruling that found eligibility for a master account does not guarantee one will be granted. Custodia subsequently asked the full Tenth Circuit to rehear the matter in December, and the Supreme Court has not yet agreed to take the case.
The Blockchain Association's brief frames the stakes as extending well beyond Custodia, warning that letting the Fed's decision stand would let federal regulators override state banking authorities and effectively determine which lawful businesses keep access to the payments system. The group characterized the Fed's stance as an improper use of its payment-services authority to pursue debanking of the digital-asset sector, and tied the dispute to what it called Operation Choke Point 2.0, referencing earlier claims that regulators used informal pressure and enforcement discretion to push banks away from crypto clients.
The filing is documented separately by The Block, which likewise notes the brief's support for Custodia's Supreme Court petition. Two distinct sources have now reported on the amicus filing.
What remains unresolved is whether the Supreme Court will agree to hear the case at all, and how the justices might weigh the dual banking system argument against the Fed's discretion over payment-system access. The outcome could set a precedent affecting how state-chartered banks serving crypto clients are treated by federal regulators going forward.