Blockchain Association Joins Forces with Custodia to Challenge Fed's Account Denial Power

The Blockchain Association has filed an amicus brief in support of Custodia Bank's Supreme Court petition against the Federal Reserve.

Custodia, a Wyoming-chartered bank, applied for a master account with the Kansas City Fed in 2020 but was rejected due to 'undue risk' and its crypto-focused operations posing a threat to financial stability.

The bank argues that the Fed is required by law to provide master accounts to eligible depository institutions, but lower courts have sided with the Fed so far.

The Blockchain Association sees this as an opportunity to set a precedent for future rulings and ensure a level playing field for crypto service providers.