Lawmakers reviewed a Federal Reserve proposal to let crypto and fintech firms access payment rails through limited accounts, as Kraken’s approval and Trump’s order sharpened debate over oversight and risk.
The House Financial Services Committee held a June 24 hearing on a Federal Reserve proposal to give crypto and fintech firms limited payment accounts, often referred to as “skinny master accounts,” that would provide direct but narrower access to the central bank’s payment system. Crypto industry participants broadly supported the idea as a way to widen access to payment rails, while community banks warned it could create oversight gaps and uneven regulation. The debate has been intensified by the Kansas City Fed’s March approval of a limited-purpose account for Kraken parent Payward and by Trump’s May executive order asking the Fed to assess payment-system access for fintechs, including crypto firms. Lawmakers also pointed to Synapse’s bankruptcy and bitcoin’s drop from $100,000 to $59,000 this year as part of the broader discussion over the risks of extending direct central bank connectivity beyond traditional banks.