The United States Association of Block Chains for Encryption Industries submitted an amicus curiae opinion in support of Custodia Bank ' s request to the United States Supreme Court to review its dispute with the Fed. The focus of the case was on whether the Federal Reserve could still deny access to the federal payment system if the bank was qualified.
The dispute revolved around the main account application.
Custodia Bank is a state-licensed bank based in Wyoming, operating in digital asset hosting, payment and settlement infrastructure, and United States dollar stabilization currency-related products for institutional clients. The Bank has been applying for the Fed's “owner account” for many years, in the hope that it will settle payments directly with the central bank system.
Last October, a panel of the United States Court of Appeal ruled that eligibility did not mean that the bank was, of course, entitled to the main account. Subsequently, in December, Custodia requested the Court of Appeals for the Tenth Circuit to reopen the case.
Industry organizations say the award has a wider impact.
In its latest paper, the Block Chain Association states that the lower court ' s support for the Federal Reserve ' s ruling effectively gave federal regulators a way to exclude legitimate businesses from the banking system. In the view of the organization, this would not only affect single banks, but could also change the United States dual-track banking system, which parallels the state and the Federation.
According to this statement, if the decision remains the same, the federal regulator, even if it does not directly overturn the bank licence issued by the state government, may, by refusing access to the payment system, substantially reject the results of the cantonal bank approval.
Focus on Digital Asset Enterprise Banking Services
In its opinion, the Block Chain Association stated that the Fed should not use its payment service authority to advance policy objectives for the digital asset industry. It was also mentioned that, during the previous government period, federal agencies had encouraged banks to reduce their dealings with clients with digital assets through vague rules, greater discretion, informal guidance and enforcement pressure.
At present, the United States Supreme Court has not yet decided whether to accept the case. But if we go to trial, the case may touch on a larger issue: The extent to which federal regulators can determine who has access to the United States payment system and whether the status of state-licensed banks will be weakened as a result.