- Federal Reserve proposes limited payment account for fintechs.
- Banks and crypto firms express concerns.
- Potential impacts on payments and stablecoins industry.
The Federal Reserve Board proposed a prototype ‘skinny master account’ on December 19, 2025, inviting public feedback, triggering pushback from banks and crypto firms concerned about potential financial stability impacts.
The proposal attempts to balance payment innovation and risk, affecting fintechs and crypto-related payments, while banks argue it may undermine financial stability.
The Federal Reserve Board’s proposal for a limited “payment account” has sparked reactions. The plan suggests a prototype called a “skinny master account,” which imposes restrictions on balances and excludes services to promote innovation for fintechs.
Christopher Waller, a FRB Governor, supports this concept to enable payments innovation without the risks associated with full master accounts. Michael Barr, another FRB Governor, expressed dissent over insufficient anti-money laundering safeguards.
Banks, represented by the Bank Policy Institute, have cautioned against the proposal. They argue it could threaten financial stability by allowing payments companies easier access to Fed services, potentially altering the industry landscape.
The proposal indirectly impacts the financial sector by supporting fintech access to Fed services. Stablecoin activities may benefit, influencing crypto-related payment innovations. No specific funding allocations or investments have yet been detailed.
The proposal has not yet named any specific cryptocurrencies like BTC or ETH. The Federal Reserve’s past policies show a trend towards cautiously facilitating secure financial innovations, balancing opportunity with oversight.
Insights suggest possible evolution in regulatory frameworks to accommodate fintech and stablecoin sectors. By restricting activities to payments and limiting risks, the Fed aims for controlled innovation. The public comment period concludes February 6, 2026.
“Christopher Waller, FRB Governor, proposed the ‘skinny master account’ concept to enable payments innovation for eligible depository institutions without full risks like overdrafts or interest; FRB aims for availability by Q4 2026.”
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