During a House Financial Services Committee hearing on Wednesday, lawmakers examined whether cryptocurrency and fintech companies should be granted direct access to the Federal Reserve's payment system through so-called "skinny master accounts." The proposal, first publicly floated by Fed Governor Christopher Waller in October 2025, would allow institutions with limited-purpose charters—including crypto-native banks—to connect directly to the Fed's core payment infrastructure, bypassing traditional intermediary banks.
"Access to the Federal Reserve payment system is not a small issue," said Rep. Dan Meuser (R-Pa.), emphasizing the need to carefully weigh who should have entry to these critical payment rails. The hearing highlighted a growing tension: the crypto industry, represented by firms like Anchorage Digital Bank (the first federally chartered crypto bank), argues direct access is overdue and would cut costs, while community banks warn that novel financial institutions are not subject to the same robust regulatory compliance.
In May 2026, President Donald Trump issued an executive order directing the Fed to evaluate its policies on granting fintech firms, including crypto companies, direct access to central bank payment systems. This followed the Kansas City Fed's approval in March of a "limited purpose account" for Payward, the parent company of crypto exchange Kraken, a move that intensified the debate over how far such access should extend.
Rachel Anderika, Head of Global Operations at Anchorage Digital Bank, pressed for federal and state regulatory frameworks that enable innovation, stating, "If America is going to continue to be the financial capital of the world, we need regulatory frameworks that allow innovation." Meanwhile, Rep. Stephen Lynch, top Democrat on the subcommittee on digital assets, pointed to the volatility of Bitcoin and Ether and cited the collapse of fintech firm Synapse in 2024, which resulted in millions of dollars in customer losses, as a cautionary example of what can happen when non-bank firms lack adequate oversight.
The hearing marks a significant step in Congress's efforts to define the rules of engagement for digital assets within the traditional banking system. Proponents believe direct Fed access could reduce settlement delays and fees, while opponents worry about systemic risk if crypto firms gain bank-like powers without equivalent safeguards.
