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The Blockchain Association argues the Fed should not have broad discretion to deny eligible state-chartered banks direct access to its payment system.<\/p>\n
The Blockchain Association urged the US Supreme Court to hear Custodia Bank\u2019s challenge to the Federal Reserve\u2019s denial of its application for a master account, which would give the crypto-focused bank direct access to the Fed\u2019s payment system.<\/p>\n
In an amicus brief filed<\/a> Wednesday, the industry group argued that federal law requires the central bank to make its payment services available to eligible nonmember banks and that the Fed should not have broad discretion to deny access.<\/p>\n The association said the appeals court\u2019s decision effectively gives the Fed veto power over state-chartered banks by allowing it to withhold services needed to operate independently. It also linked Custodia\u2019s case to alleged crypto debanking under \u201cOperation Choke Point 2.0<\/a>,\u201d arguing that federal regulators discouraged banks from serving the digital asset industry.<\/p>\n