Blockchain Association Seeks Supreme Court Review of Custodia Bank Case
The Blockchain Association is urging the Supreme Court to review Custodia Bank's long-running battle for access to the Federal Reserve's payment system. The association argues that a lower-court ruling could give federal regulators broad power to shut down lawful digital asset businesses.
Custodia, a Wyoming-chartered special-purpose depository institution focused on digital assets, has spent years seeking a Fed master account. The Kansas City Fed rejected Custodia's application after determining its crypto-focused business model posed undue risks to the banking system.
The Blockchain Association is asking the Supreme Court to embrace the reasoning of dissenting Judge Timothy Tymkovich, who said federal law provides that Fed payment services 'shall' be available to eligible nonmember depository institutions. The association warns that allowing the Fed to deny payment-system access could undermine the traditional dual banking system.