U.S. lawmakers weigh Fed skinny accounts for crypto and fintech firms

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Fed skinny accounts debate

Highlights

House Financial Services Committee debates Federal Reserve's proposal to let certain crypto and fintech firms access skinny master accounts for direct payment rail connectivity.
President Donald Trump's May executive order and the Kansas City Fed’s March approval of a limited account for Payward have intensified discussion on Fed access for digital-asset firms.
Lawmakers cite significant concerns about digital-asset volatility—bitcoin dropped to $59,000 from over $100,000 in one year—and fintech failures like Synapse’s 2024 bankruptcy affecting millions in customer funds.

Hearing focuses on Fed access rules

As reported by The Block, members of the House Financial Services Committee are debating the Federal Reserve's proposal to let certain digital-asset and fintech firms use so-called skinny accounts, a form of limited access to the central bank's payment infrastructure. Lawmakers are examining whether those firms should receive bank-like connectivity to critical payment rails and what safeguards should apply if they do.

Rep. Dan Meuser says access to the Federal Reserve payment system is a significant issue and raises safety and soundness questions. He asks who should be permitted direct access to those payment rails as the Fed considers a model that would give nontraditional financial firms a narrower form of entry into the system.

Fed Governor Christopher Waller first publicly raises the idea in October through the concept of a skinny master account. A master account gives institutions direct access to the Fed's payment systems, while firms without one often depend on partner banks that already hold such accounts to provide services.

Since then, dozens of letters have been filed on whether nontraditional financial firms should receive that access. The crypto industry broadly backs the proposal as overdue, while community banks argue that newer financial institutions are not subject to the same regulatory compliance regime and warn about the adequacy of safety measures.

Regulatory push meets volatility concerns

In May, President Donald Trump issues an executive order directing the Federal Reserve to evaluate its policies on granting fintech firms, including crypto companies, direct access to the central bank's payment rails. Separately, the Kansas City Fed approves a limited purpose account for Payward, the parent company of crypto exchange Kraken, in March, adding momentum to the broader debate over direct Fed services for the sector.

At the hearing, Anchorage Digital Head of Global Operations Rachel Anderika argues that federal and state regulatory frameworks should support innovation if the U.S. is to remain the financial capital of the world. Anchorage Digital Bank is described as the first federally chartered crypto bank.

Other lawmakers focus on the risks tied to digital-asset volatility and fintech failures. Rep. Stephen Lynch points to sharp daily price swings in cryptocurrency, including bitcoin's drop to as low as $59,000 on Wednesday after trading above $100,000 a year earlier, and questions how the financial system can respond safely for consumers.

Lynch also cites Synapse, which files for bankruptcy in 2024 after customers lose millions of dollars held on fintech platforms. He says the case shows why Congress needs to define minimum conditions before any fintech or digital-asset company gains access to powers resembling those of banks, especially through a reserve master account.

In our earlier analysis of Marathon Digital (MARA), we highlighted a sharp pullback driven by heavy intraday selling and elevated volatility after the stock failed to reclaim its 20-day moving average. The piece outlined key technical levels—resistance near $13.75 and support around $13.44—and noted that, despite short-term pressure, the broader trend structure remained constructive, with traders watching for a breakout or a downside pivot as the next directional signal.

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