Fed’s ‘Skinny Master Accounts’ Split Crypto Firms and Banks

The Federal Reserve sought public comment on a proposal to offer limited-access “skinny master accounts” to certain fintech and crypto firms; the consultation closed with 44 responses. Most crypto firms and stablecoin issuers (notably Circle and Anchorage Digital Bank) generally supported the plan, arguing it would strengthen U.S. payment rails and align with Congress’ GENIUS Act goals. The Fed’s proposed guardrails include an overnight balance cap equal to the lower of $500 million or 10% of an account-holder’s assets, no interest paid on balances, and no direct access to the Fed’s Automated Clearing House (ACH) and some clearing services. Anchorage welcomed access but flagged practical concerns around the balance cap, lack of interest on reserves, and denied ACH/clearing access. Banking groups, including the American Bankers Association and state bankers associations, warned many eligible nonbank entities lack long-term regulatory records and consistent federal safety-and-soundness standards; they urged stronger governance, risk management and compliance conditions. Watchdog Better Markets opposed the move as an irresponsible concession to crypto. The Fed will review comments and may take months to issue final rules. Traders should monitor regulatory updates because limited central-bank access for crypto firms could affect liquidity, settlement speed and treasury operations in crypto-linked payment services. Primary keywords: Federal Reserve, skinny master accounts, crypto firms, Circle, Anchorage. Secondary keywords: payment infrastructure, ACH limits, overnight balance cap, regulatory standards.