Blockchain Association Backs Custodia in Supreme Court Battle Against Fed Account Denial Power

The Blockchain Association has filed an amicus brief in support of Custodia Bank's Supreme Court petition to challenge the Federal Reserve's denial of a master account.

Custodia, a Wyoming-chartered bank, applied for a Federal Reserve master account in 2020 but was rejected by the Kansas City Fed due to 'undue risk' and its crypto-focused operations.

The Blockchain Association argues that unchecked federal power will deny crypto service providers foundational banking services.

In contrast, Kraken exchange recently received a 'limited purpose' master account from the Fed, which is granted on a one-year trial period and does not earn interest on reserves or provide access to emergency lending.