Crypto group backs Custodia in Supreme Court battle over Fed access
The Blockchain Association has asked the US Supreme Court to review Custodia Bank’s challenge to the Federal Reserve’s denial of a master account. It argues federal law requires the Fed to provide payment services to eligible nonmember banks and that the central bank should not have broad discretion to block access. The group says the Tenth Circuit’s ruling gives the Fed effective veto power over state-chartered banks and could worsen alleged crypto debanking. Custodia, a Wyoming-chartered digital-asset bank, sought direct access to Fed payment rails in 2020. The Kansas City Fed rejected the request in 2023, and the Tenth Circuit upheld that decision. The case is now the bank’s last major path for review. The dispute comes as other crypto firms gain more banking access, including Kraken Financial’s limited master account and OCC approvals for firms such as Coinbase and Circle.
