{
  "id": 1760166,
  "title": "Blockchain Group Asks SCOTUS to Review Fed’s Denial of Crypto Bank’s Bid for Master Account",
  "url": "https://urgent.news/2026/08/18/blockchain-group-asks-scotus-to-review-feds-denial-of-crypto-banks",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-18T17:12:59.000Z",
  "source": {
    "name": "PYMNTS",
    "slug": "pymnts",
    "url": "https://www.pymnts.com/cryptocurrency/2026/blockchain-group-asks-supreme-court-review-federal-reserve-denial-crypto-bank-bid-master-account/"
  },
  "original_language": "en",
  "account": "The Blockchain Association has petitioned the Supreme Court to review the Federal Reserve's decision to deny Custodia Bank access to its payment system. The trade group argues that the lower court ruling gives federal regulators the power to exclude lawful digital asset businesses from banking. In their amicus brief, the association asserts that the 10th U.S. Circuit Court of Appeals erred in granting the Federal Reserve discretion to deny master accounts even to legally eligible institutions. The Blockchain Association warns that such a decision could \"veto power over chartering judgments by state regulators\" and \"impair the Fed's ability to protect the financial system.\" They argue that the case goes beyond statutory interpretation and challenges the traditional dual banking system, potentially empowering federal regulators to override state decisions and \"debank lawful businesses.\" The association also points to what they call \"Operation Choke Point 2.0,\" alleging that the previous administration used supervisory pressure to discourage banks from serving digital asset businesses, and that the Custodia ruling could extend similar discretion to state-chartered institutions. The Kansas City Fed rejected Custodia's application due to concerns about its crypto-focused business model posing risks to the banking system. In October 2025, a divided 10th Circuit panel upheld the decision, stating that eligibility for a master account does not create an entitlement to one. The case now rests with the Supreme Court, which has not yet agreed to hear Custodia's appeal. Its outcome could reshape the balance between state banking charters and federal control over the nation's payment infrastructure.",
  "summary": "The Blockchain Association is urging the Supreme Court to take up Custodia Bank’s long-running fight for access to the Federal Reserve’s payment system, warning that a lower-court ruling could give federal regulators broad power to shut lawful digital asset businesses out of banking. In an amicus brief supporting Custodia’s petition for Supreme Court review, the […] The post Blockchain Group Asks…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}