Fed’s ‘Skinny Master Accounts’ dey split crypto firms and banks

Federal Reserve bin open make people yarn about proposal to give limited-access “skinny master accounts” to some fintech and crypto firms; consultation close with 44 responses. Most crypto firms and stablecoin issuers (especially Circle and Anchorage Digital Bank) dey generally support di plan, say e go strong US payment rails and match wetin Congress want inside GENIUS Act. Fed proposed guardrails include overnight balance cap wey be lower of $500 million or 10% of account-holder assets, no interest on balances, and no direct access to Fed’s Automated Clearing House (ACH) and some clearing services. Anchorage happy to get access but dem raise practical worries about balance cap, no interest on reserves, and denied ACH/clearing access. Banking groups like American Bankers Association and state bankers associations warn say many eligible nonbank entities no get long-term regulatory record and consistent federal safety-and-soundness standards; dem ask for stronger governance, risk management and compliance conditions. Watchdog Better Markets oppose the move as irresponsible concession to crypto. Fed go review comments and e fit take months before dem issue final rules. Traders suppose dey monitor regulatory updates because limited central-bank access for crypto firms fit affect liquidity, settlement speed and treasury operations for crypto-linked payment services.