Blockchain Association Backs Custodia's Supreme Court Fed Access Fight
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- Blockchain Association filed a Supreme Court brief supporting Custodia's petition challenging the Fed's rejection of its master account application.
- Custodia was denied a master account by the Federal Reserve Bank of Kansas City in 2023.
- Kraken Financial in March became the first crypto banking unit to receive a limited-purpose master account from that same Kansas City Fed, gaining direct access to Fedwire.
- Coinbase received conditional OCC approval in April to establish a national trust company for custody operations, though it is barred from taking retail deposits.
- Circle secured final OCC approval for its national trust bank in July; Kraken parent Payward applied for its own national trust charter the following month.
- Ripple, BitGo, Fidelity Digital Assets, and Paxos received conditional OCC national trust bank approvals in December.
- The Independent Community Bankers of America opposed Coinbase's approval, arguing crypto firms want bank charter benefits without full regulatory obligations.
Why it matters: Custodia's 2023 rejection came from the same Kansas City Fed that in March gave Kraken Financial a limited-purpose master account with direct Fedwire access — and since then the OCC has approved national trust charters for Coinbase, Circle, Ripple, BitGo, Fidelity Digital Assets, and Paxos. With crypto firms steadily winning federal banking footholds through other channels, the Supreme Court case tests whether the Fed's discretion to deny direct master accounts can survive judicial review as the industry's regulatory standing hardens.
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