Blockchain Association Backs Custodia Supreme Court Appeal Over Fed Master Account

The Blockchain Association has publicly backed Custodia Bank, a digital-asset-focused lender, in its appeal to the U.S. Supreme Court.

Eleanor Terrett, host of Crypto in America, reported on Aug. 12 that the association filed an amicus brief with the Supreme Court in the Custodia case.

The group argued that the high court should decide whether the Federal Reserve can deny a master account to a qualified state-chartered bank. Such an account is required to access the Fed's payment system.

Custodia, a Wyoming-chartered digital-asset bank, has been pursuing litigation against the Fed, arguing that the central bank acted unlawfully in refusing to grant the account.

A master account allows a bank to access the Fed's payment system and hold central bank funds directly. The industry considers it key infrastructure for digital-asset banks seeking to participate in the traditional financial system.

The Blockchain Association said the case extends beyond Custodia. It said the dispute could determine whether digital-asset companies and innovative financial institutions receive fair access to financial infrastructure.