The Blockchain Association, a crypto industry group, has submitted an amicus brief in support of Custodia Bank's application to the U.S. Supreme Court. The filing urges the high court to examine whether regional Federal Reserve banks have the discretion to refuse a qualifying state-chartered bank access to a master account. In its brief, the association warns that the lower court's ruling in favor of the Federal Reserve gives the central bank broad authority to strip banking services from industries or companies it does not recognize, and to effectively veto which state-chartered banks are permitted to operate. The warning highlights the group's concern that the central bank could decide who is allowed to participate in the banking system. Separately, the Kansas City Federal Reserve, the regional reserve bank involved in the case, has been granted an extension, with its response to Custodia's application now due on September 11. The news was relayed by a Fox Business crypto reporter on X, according to Odaily.
The Blockchain Association, a crypto industry group, has filed an amicus brief backing Custodia Bank's petition to the U.S. Supreme Court. The organization is urging the justices to review whether regional Federal Reserve banks may lawfully deny a qualifying state-chartered bank access to a master account. The news was shared by a Fox Business reporter covering cryptocurrencies in a post on X, according to Odaily.
In its filing, the Blockchain Association warns that lower court rulings siding with the Federal Reserve hand the central bank sweeping authority. That power could let the Fed strip banking services from industries or companies it does not recognize, and in effect veto which state-chartered banks are able to operate. In a related procedural move, the Kansas City Federal Reserve has been granted an extension and now has until September 11 to respond to Custodia's application.
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