Blockchain Group Asks SCOTUS to Review Fed’s Denial of Crypto Bank’s Bid for Master Account

In an amicus brief supporting Custodia’s petition for Supreme Court review, the cryptocurrency industry trade group argued that the 10th U.S. Circuit Court of Appeals went too far when it ruled that Federal Reserve banks have discretion to deny master accounts even to institutions legally eligible for them.

“The decision ratifies the Fed’s misuse of its payment services to further an impermissible policy goal—debanking the digital asset industry,” the association said.

It warned that the ruling could give the Fed “veto power over chartering judgments by state regulators.”

Custodia, a Wyoming-chartered special-purpose depository institution focused on digital assets, has spent years seeking a Fed master account. Such accounts allow banks to settle payments directly through the central bank rather than relying on an intermediary institution. Custodia provides digital asset custody, payments and settlement infrastructure, and stablecoin-related products to institutional clients.

The Kansas City Fed rejected Custodia’s application after determining that its crypto-focused business model posed undue risks to the banking system. In October 2025, a divided 10th Circuit panel upheld that decision, concluding that eligibility for a master account does not create an entitlement to one.