Blockchain Association Urges High Court Review of Custodia Bank Master Account Denial

The Blockchain Association has urged the U.S. Supreme Court to review the Federal Reserve's decision to deny Custodia Bank, a Wyoming-chartered digital asset bank, direct access to its payment system.

Custodia has argued that the Monetary Control Act requires the Fed to make its payment services available to eligible nonmember depository institutions, but lower courts have ruled that regional Reserve Banks retain discretion over whether to approve an application.

The Blockchain Association warned in its amicus filing that allowing this discretion could give federal regulators unchecked power to restrict banking access for lawful industries, potentially affecting state-chartered banks serving industries viewed unfavorably by regulators.