Blockchain Association Joins Custodia's Battle Against Fed Over Payment Services

The Blockchain Association has filed an amicus brief with the US Supreme Court in support of Custodia Bank's challenge to a Federal Reserve ruling.

Custodia, a Wyoming state-chartered bank focused on digital assets, applied for a master account from the Fed in 2020. The application was rejected by the Federal Reserve Bank of Kansas City in 2023 and upheld by the Tenth Circuit Court of Appeals.

The Blockchain Association argues that federal law requires the Fed to make its payment services available to eligible state-chartered banks. They warn that the lower court ruling gives regulators unchecked power to cut lawful businesses out of the US payments system.

The association cited Operation Choke Point 2.0, a term critics use to describe alleged pressure by federal regulators under prior administrations to discourage banks from serving the digital asset industry.