Original Title: Banks Demand Delays as Crypto Firms Push for Fed Payment Access
Original Authors: Emily Mason and Evan Weinberger, Bloomberg
Translator: Peggy, BlockBeats
Editor’s Note: The access rules of the U.S. payment system are at a critical juncture. The banking industry wants to continue guarding the entrance to the Federal Reserve to prevent bank runs and regulatory disorder, while crypto and fintech companies seek to bypass bank intermediaries and connect directly to the core clearing system. The intertwining of stablecoin yields, account permissions, and regulatory responsibilities has escalated this institutional discussion. The focus of the controversy is no longer on a specific account design, but on who has the right to directly access the core of the U.S. payment infrastructure.
The following is the original text:
The banking industry has officially expressed opposition to directly opening the Federal Reserve's payment system to crypto and fintech companies, further escalating the controversy over "who has the right to control the core access to U.S. payment infrastructure."
The Bank Policy Institute, Clearing House Association, and Financial Services Forum submitted a joint opinion letter detailing their arguments, demanding a 12-month waiting period before companies can qualify to apply for payment accounts. These lobbying groups particularly advocate that the Federal Reserve should not grant system access to newly licensed stablecoin issuers until they can prove they can operate safely and soundly. If the related disputes proceed to judicial proceedings, these arguments may become the basis for further escalation of the conflict.
The crux of the controversy lies in whether to allow direct access to the Federal Reserve's payment "pipeline," a privilege that has long been monopolized by the banking system. Currently, crypto and fintech companies still need to rely on partner banks to gain access to payment services and compliance infrastructure such as anti-money laundering monitoring. The so-called "skinny account" proposal could potentially allow stablecoin issuers and payment companies to bypass bank intermediaries and connect directly to the Federal Reserve system.
Banking groups believe that the prerequisite for such accounts should be that the applicants have at least 12 months of "successful and safe sound operation records." They point out that the Federal Reserve lacks sufficient experience with many potential applicants and does not have direct regulatory authority over most of these institutions. Additionally, although the Genius Act was signed into law by the president in July this year, a specific regulatory framework for stablecoin operators has not yet been fully established.
In a joint opinion letter submitted on February 6, the Bank Policy Institute, Clearing House Association, and Financial Services Forum stated that while the proposal sets some important safeguards for the financial system, it does not necessarily prevent the potential run risks that newly licensed institutions may face.
Financial regulatory oversight organization Better Markets warned that the overall momentum may not be on the side of the banks. Better Markets CEO Dennis Kelleher wrote in a comment, "The arrangement for the Federal Reserve to provide payment accounts is very likely to move forward, regardless of opposition." The deadline for public comments was last Friday.
To proactively address these concerns and comply with the upcoming rules related to the Genius Act, a large number of fintech and crypto companies have begun applying for national trust bank charters, with some institutions explicitly stating that their ultimate goal is to apply for access to the Federal Reserve's master account.
As early as 2022, the Federal Reserve introduced a tiered review mechanism to assess master account applications. Anchorage Digital Bank, which holds a national trust bank charter, recently submitted an application as a "Tier 3" entity, which typically means the strictest review standards. The American Bankers Association argues that access to master accounts should be limited to institutions recognized as "Tier 1," directly regulated by federal banking regulators, and holding federal deposit insurance.
This banking organization also pointed out that new payment accounts should not be used as a "stepping stone" to master accounts, and master accounts should always be obtained through an independent application process.
Circle and Anchorage argue that the proposed "skinny accounts" are overly rigid and restrictive in design. For example, the current proposal does not allow account holders to access FedACH, a payment system that processes trillions of dollars in transactions annually. Federal Reserve Governor Christopher Waller stated when he initially proposed the account scheme last year that skinny accounts would not provide overdraft limits and could not use discount window financing. Circle noted in its opinion letter that whether FedACH access is granted to payment accounts depends on whether appropriate control mechanisms to prevent overdrafts can be established.
Federal Reserve Governor Christopher Waller at a public meeting of the Federal Reserve Board in Washington, D.C. on October 24, 2025. Photo: Al Drago / Bloomberg.
The Financial Technology Association also criticized the overnight balance cap, which is set at $500 million or 10% of total assets (whichever is lower). The association believes this limit is too harsh for established payment companies, as these institutions often handle transaction volumes of tens of billions of dollars daily.
Anchorage pointed out that if this cap is maintained, account holders will have to sweep excess funds into partner bank accounts at the end of each trading day. Additionally, Anchorage added that payment account holders should also be able to earn interest on their balances in the Federal Reserve's reserve accounts.
This debate coincides with another highly sensitive issue: whether crypto trading platforms like Coinbase Global Inc. should be allowed to offer users yield incentives linked to their stablecoin balances. Currently, Coinbase Global Inc. offers a 3.5% yield return to users with USDC balances. The banking industry believes this practice could "siphon" deposits from the traditional financial system, posing a threat to the banking deposit base. This disagreement has slowed the progress of related legislation.
It is reported that the White House has intervened to coordinate negotiations and hopes to push for a resolution on this issue by the end of the month.
However, these concerns have not become the core focus of the discussion in the opinion letter regarding "skinny accounts."
Financial stability advocates and banking groups simultaneously warned that the proposed accounts exceed the Federal Reserve's statutory authority and could pose significant systemic risks.
The financial regulatory organization Better Markets bluntly stated in its opinion letter: "The proposal itself clearly indicates that the Federal Reserve is aware that those institutions currently applying, and those that will apply in the future for access to payment accounts, pose a significant risk to the Federal Reserve system and the entire financial system. This is precisely why almost the entire proposal revolves around risk mitigation."
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