Industry stakeholders have submitted initial feedback on the Federal Reserve's proposed 'skinny' master accounts, with fintech and cryptocurrency groups arguing the framework is too restrictive. Banking trade groups, meanwhile, request an extension of the public comment period. The proposal, aimed at spurring payments innovation, was introduced by Fed Governor Christopher Waller in mid-October.
The Federal Reserve's proposal for 'skinny' master accounts, which would grant limited direct access to the central bank's payment systems for eligible fintech firms, has elicited mixed responses from industry players. First outlined by Governor Christopher Waller, who chairs the Fed's committee on payments, clearing, and settlement, the idea seeks to foster innovation without exposing the central bank to excessive risk. Public comments on the request for information were due by February 6, 2026.
Fintech representatives, including the Financial Technology Association (FTA), which counts eBay, Klarna, and Amazon Pay among its members, expressed support for the concept but highlighted significant limitations. In a February 6 comment letter, FTA CEO Penny Lee wrote: "While we support the intent of the prototype, the current proposed design includes certain restrictions that would inadvertently undercut key policy objectives and instead could be addressed through more tailored risk management measures."
The FTA criticized the exclusion of access to the Fed's automated clearing house (ACH) network, essential for processing electronic payments like payroll and bill payments. It also opposed the overnight balance cap, set at the lesser of $500 million or 10% of total assets, deeming it "unduly restrictive for major payment processors handling billions in daily volume." The group suggested tying the limit to payment activity instead.
Cryptocurrency advocates echoed these concerns. The Blockchain Payment Consortium (BPC) argued in a January 29 letter that the cap "severely underestimates the scale of the $4 trillion digital asset market" and proposed increasing it by 30% to 40%. The BPC also called for stablecoin issuers to access Fedwire Securities for transfer against payments, enabling direct settlement of U.S. Treasuries and reducing reliance on third parties. "Commercial banks lack the proper economic and commercial incentives to be honest actors in a competitive market that includes the stablecoin economy," the letter stated.
Under the proposal, skinny account holders would access the Fedwire Funds Service, National Settlement Service, FedNow, and limited Fedwire Securities transfers, with restrictions intended to minimize credit risk to reserve banks.
Banking groups, including the American Bankers Association, Bank Policy Institute, and Independent Community Bankers of America, jointly requested a 30-day extension to the comment period, citing insufficient time for thorough analysis. Governor Waller has indicated a fast-track timeline, aiming for operationalization by the fourth quarter of 2026. In a November speech, he remarked: "The goal here, assuming nothing goes haywire, is to have these up and operationalized by the fourth quarter of 2026, so we're moving at startup speed on this — we're not screwing around like federal regulators."
