Crypto firms and banks clashed in public comments to the Federal Reserve over a proposal to create “skinny master accounts” that would give fintechs limited access to the central bank’s payments system.
The Fed received 44 submissions on the plan, which would introduce restricted “payment accounts” without interest, credit access or full clearing privileges, as it reviews how to support innovation while safeguarding the system.
“These accounts would play an important first step in carrying forward Congress’ vision under the GENIUS Act and materially strengthen US payments,”
Stablecoin issuer Circle said in its response.
Crypto groups including the Blockchain Payments Consortium and Anchorage Digital backed the idea but raised concerns about proposed balance caps, lack of interest on reserves and exclusion from clearing services.
Banking groups pushed back, with the American Bankers Association warning that many eligible firms lack a long supervisory record and consistent federal safety and soundness standards.
The Wisconsin Bankers Association and advocacy group Better Markets argued that access should depend on proven governance and risk controls, with Better Markets calling the proposal an “irresponsible and reckless giveaway.”
The Fed said it will weigh the feedback before deciding whether to finalise the rule, a process expected to take several months.