Fed seeks feedback on "mini master accounts," crypto banks support

Nearly 30 comments have been submitted to the U.S. Federal Reserve (Fed) before the Friday deadline regarding the proposal for a “skinny master account” — a mechanism allowing certain eligible organizations limited access to the central bank’s payment system.

This proposal aims to provide controlled access for non-traditional financial institutions in the context of technological innovation, while still limiting benefits such as no interest on balances, no access to discount windows, and a cap on overnight balances.

Anchorage Digital Bank – the first federally licensed crypto bank – expressed support for the Fed’s initiative but warned that the overnight balance cap could pose operational risks. According to the draft, the Fed is considering setting a cap of “$500 million or 10% of total assets” for organizations holding accounts. Anchorage has proposed removing or raising this cap, arguing that the current regulation forces organizations to transfer funds through intermediary banks, reintroducing credit and operational risks that the payment account aims to eliminate.

Meanwhile, community banking associations have expressed concerns about system safety. The Colorado Bankers Association emphasized that traditional master accounts are only granted to insured, low-risk organizations with strict oversight. The Illinois Community Bankers Association warned that allowing new financial organizations access to “skinny” accounts could create unfair competitive advantages and pose risks to consumers and the financial system.

On the other hand, the Blockchain Payments Union — with participation from the Solana Foundation and Sui Foundation — called the proposal “long overdue,” arguing that access to the central bank’s payment system is crucial for implementing a federal-level stablecoin legal framework (GENIUS Act), while still ensuring the Fed’s mission to protect the payment system.