At stake is direct access to the Fed’s payments plumbing, a privilege banks have long monopolized. Crypto and fintech firms now rely on partner banks for access and compliance infrastructure like anti-money laundering monitoring. The “skinny account” proposal would let stablecoin issuers like Circle Internet Group Inc. and payment firms like Stripe Inc. bypass that intermediation.
(Feb 10) : Banks have formalized their opposition to giving crypto and fintech firms direct access to the Federal Reserve’s payment systems, escalating a fight over who controls access to the core of the US payments infrastructure.
The Bank Policy Institute, Clearing House Association, and Financial Services Forum laid out detailed arguments in a joint comment letter demanding a 12-month waiting period before firms are eligible to apply for the payment accounts. In particular, the lobbying groups argued the Fed should block access until newly licensed stablecoin issuers prove they can operate safely. The arguments could provide a foundation for escalation if the dispute turns litigious.
