Catenaa, Sunday, February 8, 2026- The Federal Reserve’s proposal to offer a limited “skinny master account” drew sharp and competing responses from crypto-focused banks and community lenders as a public comment period closed Friday.
Nearly 30 submissions addressed whether nontraditional financial firms should gain partial access to the US central bank’s payment systems. A master account provides direct access to Fed payment rails and the US money supply, while institutions without one must rely on correspondent banks.
The Fed said financial innovation has prompted consideration of a narrower account structure designed to reduce risk.
Under the proposal, eligible institutions would face limits, including no interest on balances, no access to the discount window and restrictions on overdrafts. Fed Governor Christopher Waller outlined the idea in October.
Anchorage Digital Bank, the first federally chartered crypto bank, said it supported the initiative but raised concerns about proposed balance caps. The Fed is considering an overnight limit of $500 million or 10% of an institution’s total assets.
Anchorage said such limits could force firms to move client funds back to correspondent banks, increasing operational and credit risk.
Crypto industry groups also supported the concept. The Blockchain Payment Consortium, backed by major blockchain foundations, said direct settlement access is relevant as new federal stablecoin rules take effect and could support payment system efficiency.
Community banks pushed back, warning of safety and competitive risks. Banking associations in Colorado and Illinois said master accounts have traditionally been limited to insured, low-risk institutions subject to extensive oversight. They argued that expanding access could weaken protections for consumers and the broader financial system.
The Fed has not said when it will decide on the proposal.
