Federal Reserve Discretion Over Master Accounts Faces Supreme Court Challenge

Winston Taylor filed an amicus brief on behalf of The Digital Chamber in Custodia Bank, Inc. v. Federal Reserve Board of Governors.

The case revolves around the question: Does the Monetary Control Act permit Regional Reserve Banks to deny master accounts to eligible depository institutions?

A master account grants direct access to the nation's payment rails, but without one, a chartered institution relies on correspondent banks whose services can be withdrawn at any time.

The Fed's Account Access Guidelines subject many institutions serving the digital assets sector to Tier 3 review when seeking a master account, which has been described as 'unobtanium,' implying that those banks may never receive a master account despite statutory mandate.