Blockchain Association Supports Custodia Bank's Supreme Court Petition Over Fed Master Account Access

The Blockchain Association has filed an amicus brief in support of Custodia Bank's Supreme Court petition, arguing that regional Federal Reserve banks should not have unchecked power to shut lawful crypto firms out of the payment system.

Custodia Bank, a Wyoming-based crypto bank, has been fighting for a Fed master account since October 2020, but its application was denied by the Kansas City Fed in January 2023. The association's brief warns that if this precedent stands, regional Fed banks could sideline entire sectors on discretionary grounds.

The significance of a Fed master account lies in its direct connectivity to the central bank's payment systems, allowing for faster and more reliable settlement rails. Custodia Bank has been trying to close this gap, but its setbacks stand in contrast to Kraken Financial's limited-purpose master account granted by the Kansas City Fed in March 2026.