The U.S. Federal Reserve's proposal to grant cryptocurrency and fintech firms restricted access to its payment network has drawn significant industry engagement, with approximately 30 formal comment letters submitted by the February 6, 2025 deadline. The proposal, first announced in late 2024, would create a limited form of master account—often called a "skinny" master account—allowing eligible non-bank institutions direct but constrained access to Federal Reserve payment rails like Fedwire and the National Settlement Service.
The proposed framework establishes clear guidelines but comes with significant restrictions: no interest on balances, no access to the discount window, and limits on overdrafts. A key point of contention is a proposed cap on overnight balances, set at "$500 million or 10% of the Payment Account holder's total assets." Anchorage Digital Bank, the first federally chartered crypto bank, supported the proposal's direction but argued this cap would force firms to move client funds back to correspondent banks overnight, "reintroducing the very credit and operational risks the Payment Account is intended to eliminate."
A major submission came from the Blockchain Payments Coalition (BPC), a consortium representing major Layer 1 blockchain networks including Sui (SUI) and Solana (SOL). The coalition characterized the proposal as "an overdue but necessary measure" for modernizing U.S. financial infrastructure. Their letter emphasized that direct access is crucial for implementing the proposed GENIUS Act, comprehensive stablecoin legislation currently under congressional consideration. The BPC argued access would reduce costs, increase efficiency for blockchain-based payments, and is essential for compliant, transparent stablecoin operations.
However, the proposal faces pushback from traditional banking groups. The Colorado Bankers Association warned that expanding access could weaken safeguards, noting "Master accounts have traditionally been granted to insured and low-risk institutions." The Community Bankers Association of Illinois expressed concern that newer financial firms would gain an unfair competitive advantage while posing a "significant risk of harming consumers, the financial system and American taxpayers."
Federal Reserve Governor Christopher Waller, who first outlined the "skinny" account concept in October, has emphasized that any expansion "must include appropriate safeguards to protect the integrity of the payment system and financial stability." The Fed will now review all submissions before publishing final rules, possibly by mid-2025. This development marks a pivotal moment in the potential integration of digital assets into mainstream U.S. finance, balancing innovation with risk management.
