In a significant development within the financial landscape, major U.S. banks and cryptocurrency firms are set to converge at the White House on Tuesday. The meeting aims to address the escalating disputes surrounding stablecoin yields and the Federal Reserve”s proposed “skinny” master accounts.
As reported by Crypto In America, this gathering will feature senior policy staff rather than CEOs, along with representatives from various banking and crypto trade associations. Notable banks such as Bank of America, JPMorgan, and Wells Fargo have received invitations, with PNC, Citi, and U.S. Bank likely included as well. Additionally, Paul Grewal, Chief Legal Officer of Coinbase, is expected to participate.
Although the primary focus of the meeting revolves around stablecoin yields, the Fed”s proposed “skinny” master accounts have emerged as a contentious point between traditional banks and the cryptocurrency sector. These accounts are designed to grant eligible fintech firms restricted access to the Fed”s payment infrastructure, a move that has sparked tensions and differing opinions.
The divide became evident following the submission of 44 comment letters to the Fed last Friday, as stakeholders voiced their positions on the proposal. While crypto organizations largely expressed support, traditional banking associations responded with caution and skepticism.
For example, stablecoin issuer Circle emphasized that these accounts could enhance the overall resilience of the payment system. The Blockchain Payments Consortium, which consists of companies like Fireblocks, Polygon, Solana, and TON, similarly endorsed the plan, arguing that it could mitigate uncompetitive practices and reduce risk concentration in a few banks.
However, not all crypto firms are wholly supportive. Anchorage Digital, while acknowledging the proposal as a positive advancement, raised concerns about specific restrictions. They pointed out that beneficiaries would still lack direct access to the Fed”s automated clearing house, along with limitations on balance holdings and interest earnings on reserves.
In contrast, banking groups articulated broader regulatory apprehensions. The American Bankers Association noted that many eligible entities lack a long-term supervisory history, cautioning that federal safety and soundness standards could be inconsistent among applicants. The Colorado Bankers Association issued a warning that these accounts might inadvertently facilitate expedited fraud.
Meanwhile, Better Markets CEO Dennis Kelleher voiced strong opposition in his letter, characterizing the proposal as a “reckless giveaway” that expands the Fed”s authority inappropriately. Notably, the proposed accounts could significantly benefit stablecoin issuers like Ripple and Circle, who rely on stablecoins for their payment services.
The Federal Reserve has indicated it will review the comment letters before finalizing any rules. Waller, a key figure in the discussions, expressed hope to release formal regulations by the fourth quarter of this year.
