A long-running dispute between the U.S. banking sector and the crypto industry is widening, with tensions now extending beyond stablecoin yields to a new regulatory flashpoint: the Federal Reserve’s (Fed) “lean” master accounts.
According to a report Published Monday by Crypto In America, the disagreement emerges as another obstacle in an already tense relationship between traditional finance and digital asset companies.
Tensions around cryptobanks are increasing
The issue comes as lawmakers continue to struggle to pass planned crypto market structure legislation, known as CLARTÉ lawwhich has been delayed in part by unresolved questions over whether crypto companies should be allowed to offer a yield on stablecoins.
Attention is now shifting to the Federal Reserve’s proposal to introduce “skinny” master accounts, a limited form of Fed access that would allow eligible fintech and crypto companies to connect directly to the central bank’s payments infrastructure without benefiting from full banking privileges.
Eleanor Terret, the journalist closely following the bill’s progress in Washington, reported that banks and crypto advocates are sharply divided on the proposal.
Terret noted that the disagreement became clear through 44 comment letters submitted to the Federal Reserve last Friday by a wide range of stakeholders, including crypto companies, industry groups, professional banking associations and individual commentators.
Circle (CRCL) argued that granting limited access to the Fed would strengthen the overall payments system by increasing its resilience. The Blockchain Payments Consortium said lean master accounts could help eliminate uncompetitive practices that disadvantage consumers and concentrate risks within a small number of large banks.
However, not all crypto companies have expressed their full approval. Anchorage Digital described the proposal as a step in the right direction but criticized its limitations.
The company noted that the accounts would not provide direct access to the Federal Reserve’s automated systems. clearing housenor would they allow businesses to hold balances or earn interest on reserves – characteristics that Anchorage believes are necessary for meaningful participation in the payments system.
Fraud and surveillance issues
Banks, on the other hand, have expressed concerns about oversight and risks. The American Bankers Association (ABA) has warned that many of the entities that stand to benefit from lean accounts do not have long-term supervisory histories and are not governed by consistent federal safety and soundness standards.
The group also pointed out that many crypto companies operate under regulatory frameworks which are still evolving. The Colorado Bankers Association echoed those concerns, warning that expanded access could create opportunities for more rapid fraud.
The Federal Reserve said it would review all comments submitted before drafting formal rules for lean master accounts. Fed Governor Christopher Waller told Crypto In America that he hopes the central bank will be able to release a proposal for these rules in the fourth quarter of this year.
The debate comes just ahead of a meeting scheduled for Tuesday at the White House, where officials are expected to bring together representatives from the crypto and banking industries to try to ease tensions, particularly around the issue of stablecoin yield.
Featured image from OpenArt, chart from TradingView.com
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