According to The Block, the Blockchain Association filed an amicus brief on August 13 in support of Custodia Bank’s appeal to the U.S. Supreme Court, seeking review of the Federal Reserve’s denial of its master account application. The Blockchain Association stated that this case concerns whether legitimate digital asset businesses can compete on a level playing field and warned that the lower court’s ruling sets a precedent allowing federal regulators to de-bank undesired industries in the future without state regulatory oversight. Custodia Bank, founded by Wall Street veteran Caitlin Long, applied for a Federal Reserve master account in October 2020. In January 2023, the Kansas City Fed denied the application, citing risks associated with its cryptocurrency business model. Since then, Custodia has lost twice in district court and the Tenth Circuit Court of Appeals, and in March 2026, the full court denied rehearing en banc by a 7–3 vote. The Kansas City Fed must respond to the Supreme Court petition by September 11.
Blockchain Association Supports Custodia Bank’s Supreme Court Appeal for Federal Reserve Master Account Access
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Summary
On August 13, the Blockchain Association filed an amicus brief supporting Custodia Bank’s Supreme Court challenge against the Federal Reserve’s denial of its master account application. Custodia, led by Caitlin Long, first applied in October 2020 and was rejected in January 2023, with the Fed citing risks associated with its cryptocurrency operations. The bank lost two lower court rulings and a 7-3 rehearing vote in March 2026. The Federal Reserve Bank of Kansas City has until September 11 to respond. The case could impact how CFTC and MiCA align with U.S. banking regulations.
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