Summary
- The Blockchain Association has submitted an amicus brief backing Custodia Bank's request for Supreme Court consideration.
- Custodia is contesting a ruling that supported the Federal Reserve’s rejection of its master account application.
- This case may influence the extent of authority federal regulators possess over state-chartered banks.
The Blockchain Association is calling on the Supreme Court to intervene in Custodia Bank's dispute with the Federal Reserve, asserting that the central bank should not wield excessive authority to deny payment system access to eligible state-chartered banks.
In an amicus brief filed on Wednesday in support of Custodia's petition, the crypto advocacy group contended that a lower court's ruling favoring the Fed provides federal regulators a subtle means to exclude lawful businesses from the banking sector.
Myriad: Will the Clarity Act be enacted in 2026? Share your thoughts.The Blockchain Association stated, "The decision legitimizes the Fed’s misuse of its payment services to advance an impermissible policy goal—debanking the digital-asset industry."
An amicus brief is a legal document submitted by someone not directly involved in a case, aiming to provide additional arguments or context to the court. In this instance, the Blockchain Association supports Custodia’s appeal for the Supreme Court’s review of the matter.
The core issue revolves around Custodia's pursuit of a Federal Reserve “master account.” Based in Wyoming, Custodia is a crypto bank that provides services such as digital asset custody, payment processing, and dollar-backed stablecoin products to institutional clients. The bank has been attempting to obtain a master account for years, which would enable it to make direct payments with the central bank. In October, an appeals panel ruled that merely being eligible does not guarantee Custodia an account. Subsequently, in December, the bank requested a full rehearing by the Tenth Circuit.