Crypto Group Warns Fed Could Use Banking Access to Squeeze Digital Asset Firms
The Blockchain Association is backing Custodia Bank’s appeal to the Supreme Court in its dispute with the Federal Reserve over access to a Fed master account. Custodia, a Wyoming crypto bank, says it should be able to settle payments directly with the central bank because it is an eligible state-chartered bank. A lower court ruled that eligibility alone does not guarantee access. The association argues that letting the Fed deny accounts this way gives regulators a quiet tool to “debank” lawful businesses, especially in the digital-asset sector, and could weaken the dual banking system by allowing federal authorities to override state banking decisions. It says the case is part of “Operation Choke Point 2.0,” alleging pressure on banks to avoid crypto clients. The brief asks the Court to decide how much discretion the Fed should have over payment-system access.
