Custodia Bank picked up a powerful ally on August 12, 2026, when the Blockchain Association filed an amicus brief backing the Wyoming bank’s petition to the U.S. Supreme Court.
The filing argues that regional Federal Reserve banks should not hold unchecked power to deny master accounts to eligible institutions like Custodia, which operates under a Wyoming state charter. The case, docketed as No. 26-62, could decide whether digital asset banks get a clearer path to direct access to the country’s payment system.
The Blockchain Association’s Case Against Fed Discretion
In its amicus brief, the Blockchain Association told the justices that federal regulators spent years pressuring banks to cut ties with digital asset firms, a campaign critics have called Operation Choke Point 2.0.
The nonprofit, which represents more than 100 blockchain companies, warned that the Tenth Circuit’s ruling would give the Fed “unprecedented power” to bar disfavored industries from the banking system whenever regulators object to a business model.
Custodia has pursued a Fed master account since October 2020, when it applied under Wyoming’s charter for a Special Purpose Depository Institution. Court records show the Kansas City Fed initially raised no major objections to the application before the Federal Reserve Board directed a reversal that led to a formal denial in January 2023.
Custodia’s certiorari petition, filed July 10, 2026, asks the justices to decide whether regional Reserve Bank presidents hold “unbounded, unreviewable discretion” to shut out banks the Fed disfavors.
The Tenth Circuit sided with the Fed by a 2-1 vote in October 2025, and the full court declined to rehear the case by a 7-3 vote in March 2026. That timeline puts Custodia behind Kraken Financial, which secured a limited-purpose master account from the Kansas City Fed in March 2026 and became the first crypto-native institution with direct Fed access.
The Stakes for Crypto Banking Access
If the Supreme Court takes up Custodia’s case, a win would give any state-chartered digital asset bank firmer ground to demand direct Fed access instead of relying on costly correspondent banks, an access problem already shaping institutional crypto adoption as more firms seek a foothold in the traditional banking system.
A loss would leave regional Reserve Bank presidents with continued discretion to block crypto-focused charters one application at a time. Either way, the ruling will shape how quickly new digital asset banks can plug directly into the traditional payment system in the years ahead.
The September 11 Deadline for the Fed’s Response
The Kansas City Fed must respond to Custodia’s petition by September 11, 2026, according to the Supreme Court’s docket for case No. 26-62. If the justices grant certiorari after that filing, the case would likely be argued during the Court’s next term, putting a ruling on Fed master account access within reach sometime in 2027.
What this means for you: September 11 is the next real checkpoint, since a response that opposes review would still leave the case pending while one that concedes the issue could speed a ruling on direct Fed access toward 2027 instead of later.
