The US Federal Reserve is weighing sharply divided feedback on a proposal that would grant limited access to its payments system through so-called “skinny master accounts,” highlighting growing tensions between crypto firms and traditional banks.
Federal Reserve Payment Account Proposal Explained
The proposal would introduce a new type of “payment account” designed for non-bank financial institutions, including fintech and crypto companies. Unlike full master accounts held by commercial banks, these accounts would not earn interest, would not provide access to Federal Reserve credit facilities, and would be subject to strict balance caps. The Fed received 44 public comments before the consultation period closed.
Fed officials have framed the proposal as a response to rapid innovation in digital payments, arguing it could support competition while preserving financial stability.
Crypto Industry Supports Limited Fed Access
Several crypto-related firms welcomed the proposal, calling it a step toward modernizing US payment infrastructure. Stablecoin issuers and blockchain payment groups argued that limited access to the Fed’s system could reduce reliance on intermediary banks, improve efficiency, and align with recent legislative efforts to clarify the role of digital assets in payments.
Some firms, however, urged adjustments to balance limits and operational restrictions to make the accounts more practical.
American Bankers Association said that;
Banking associations pushed back strongly, cautioning that many potential account holders lack established regulatory oversight and long-term supervisory histories. Critics argued that expanding access could introduce new risks to the Federal Reserve and blur the boundaries of its mandate.
The Fed is now reviewing the feedback as it considers whether—and how—to finalize the proposal in the coming months.
Disclaimer
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