Blockchain Association Joins Fight for Master Account Access at Federal Reserve

The Blockchain Association has filed an amicus brief in support of Custodia Bank's petition to the US Supreme Court, arguing that regional Federal Reserve banks have too much discretion when it comes to denying master accounts to eligible state-chartered institutions.

Custodia Bank, a Wyoming-chartered special-purpose depository institution focused on serving digital-asset clients, was denied a master account by the Federal Reserve Bank of Kansas City in January 2023. The bank claimed that the Monetary Control Act of 1980 requires the Fed to make its services available to eligible nonmember depository institutions.

The Blockchain Association argues that allowing regional banks unchecked authority to deny master accounts gives federal officials too much power, potentially undermining the dual banking system and excluding lawful industries from core financial infrastructure.