The battle over who controls access to the U.S. financial system’s core payment infrastructure is intensifying, as banks, fintech firms, and crypto companies clash over a Federal Reserve proposal that could reshape how money moves across the economy.
Key Takeaways
The Fed is considering limited payment-system access for fintech and crypto firms through “skinny master accounts.”
Banks oppose the move, warning it could introduce systemic risk and weaken oversight.
At its core, the dispute is about control of the Fed’s payment infrastructure.
Crypto and fintech firms argue the proposal is too restrictive to be effective.
In early February 2026, major U.S. banking groups formally opposed the idea of “skinny master accounts” – a limited form of direct Federal Reserve access designed for non-bank firms. The proposal has become a focal point in the broader struggle over whether payments innovation should continue to flow through banks or connect directly to central bank systems.
What the Fed Is Proposing
The concept was introduced in late 2025 by Federal Reserve Governor Christopher Waller as a way to modernize payment rails without granting full central bank privileges to non-bank institutions.
Under the plan, qualified fintech and crypto firms could access FedNow and FedWire, but not FedACH, the most widely used U.S. payment network. These accounts would not earn interest on reserves, would have no access to emergency lending, and would face strict balance limits of either $500 million per day or 10% of total assets. Stablecoin issuers, payment processors, and crypto-focused financial firms are the primary targets.
Banking Industry Pushback
On February 9, 2026, leading trade groups – including the Bank Policy Institute, the Clearing House Association, the American Bankers Association, and the Financial Services Forum – submitted a joint comment letter urging the Fed to tighten the proposal.
Banks argue that fintech and crypto firms lack consistent federal supervision and should not gain access to critical infrastructure without proving a record of safe and sound operations. They are calling for a mandatory 12-month waiting period before newly licensed firms can apply, warning that premature access could introduce systemic risk and regulatory fragmentation.
A Fight Over the Payment Pipes
Beyond risk concerns, the dispute reflects a deeper power struggle. Banks have long held a monopoly over direct access to the Federal Reserve’s payment systems, positioning themselves as essential intermediaries.
Even limited access for non-banks could weaken that role by allowing fintech and crypto firms to reduce reliance on partner banks, shifting competitive dynamics across the payments ecosystem.
Why Crypto and Fintech Want In
Crypto and fintech firms broadly support the idea but argue the proposal is too restrictive to be effective. Industry groups say limited access would reduce dependence on a handful of partner banks that currently act as gatekeepers.
Firms such as Circle and Anchorage Digital have pushed for access to FedACH and the ability to earn interest on reserves, while payment companies like Stripe see the accounts as a potential bridge between traditional finance and digital-native payments.
Legal and Political Backdrop
The standoff follows key legal and policy developments. In October 2025, the 10th Circuit Court of Appeals upheld the Federal Reserve’s authority to deny master account applications, confirming that eligibility does not guarantee access. In April 2025, the Fed also rolled back earlier crypto-specific supervisory guidance, shifting oversight into standard examination processes.
Political pressure has added another layer, with Donald Trump signing an executive order aimed at preventing banks from denying services solely based on crypto involvement.
What Comes Next
The Federal Reserve received 44 public comments by the February 2026 deadline. Governor Waller has said the central bank aims to finalize the rule by the end of 2026, setting the stage for a decision that could redefine who gets direct access to the backbone of the U.S. payments system.
