Blockchain Association backs Custodia Bank's Supreme Court petition

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The Blockchain Association is throwing its weight behind Custodia Bank's effort to bring its fight with the Federal Reserve to the U.S. Supreme Court.

The crypto industry trade group backed Custodia's petition asking the high court to review whether the Fed can deny a master account to a lawful digital asset business. A Fed master account gives a bank direct access to the central bank's payment systems, a key piece of infrastructure for any financial institution.

The Association framed the case as a matter of fair competition. The group said the dispute is about ensuring lawful digital asset businesses can compete on equal footing with traditional banks that already hold such accounts.

Custodia Bank, a Wyoming-chartered institution focused on digital assets, has been locked in a legal battle over the Fed's refusal to grant it a master account. The case has become a flashpoint in the broader debate over how federal regulators treat crypto-focused financial firms. Critics argue the Fed has used account access as a gatekeeping tool to keep the digital asset industry at arm's length from the traditional banking system.

If the Supreme Court agrees to hear the case, it could set a precedent for how crypto banks interact with the Federal Reserve system going forward. No timeline for a decision on whether the court will take up the petition has been announced.

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