Crypto and Banks Clash Over Fed ‘Skinny’ Accounts Before White House Meeting

Crypto vs Banks: White House Talks on Fed ‘Skinny’ Master Accounts, Stablecoin Yields and Payment Access-Officials to Decide Now.

Crypto firms and major U.S. banks are set to meet at the White House as tensions rise over the Federal Reserve’s proposed “skinny” master accounts.

The proposal has become a central point of disagreement between traditional banks and crypto companies, just ahead of a policy meeting aimed at easing divisions over stablecoins and access to payment systems.

Dispute Over Fed Access Intensifies Ahead of Meeting

The White House has scheduled the next stablecoin yield meeting for Tuesday, Feb. 10, formally bringing bank representatives into the discussions alongside crypto industry participants. 

The meeting marks an escalation in talks over stablecoin structure, yield, and regulatory access, as policymakers seek to address growing tensions between traditional banks and crypto firms over payments and financial infrastructure.

Representatives from major U.S. banks were invited, including Bank of America, JPMorgan, and Wells Fargo.

Invitations may also have been extended to Citi, PNC, and U.S. Bank. Coinbase Chief Legal Officer Paul Grewal is also expected to participate in the meeting.

While stablecoin yields remain a key topic, disagreement over the Fed’s “skinny” master accounts has added pressure.

The accounts would offer eligible nonbank firms limited access to the Fed’s payment rails.

This access has traditionally been reserved for regulated banks, creating concern among banking groups.

Comment Letters Show Sharp Split Between Sectors

The divide became clearer after the Federal Reserve received 44 public comment letters last week.

Crypto firms and blockchain groups largely supported the proposal. Bank trade associations, however, urged caution and called for stricter oversight standards.

Stablecoin issuer Circle said the accounts could strengthen payment system resilience.

The Blockchain Payments Consortium, which includes Fireblocks, Polygon, Solana, and TON, also backed the proposal. The group said it could reduce reliance on a small number of banks.

Not all crypto firms offered unconditional support. Anchorage Digital described the plan as a positive step but flagged limits.

It noted the lack of access to the Fed’s automated clearing house. Anchorage also raised concerns about caps on balances and restrictions on earning interest.

Related Reading: White House Crypto Talks Today: Stablecoin Yields Take Center Stage

Banks Warn of Regulatory and Fraud Risks

Banking groups raised broader regulatory concerns in their submissions to the Fed.

The American Bankers Association said many eligible firms lack long-term supervisory records. It also warned that safety standards differ widely across potential applicants.

The Colorado Bankers Association said the accounts could increase fraud risks. It warned that faster access could weaken existing safeguards.

Better Markets CEO Dennis Kelleher also criticized the proposal. He called it “a reckless giveaway” in a letter to the Fed.

Federal Reserve Governor Christopher Waller said the central bank will review all comments. He told Crypto In America that draft rules could be released in the fourth quarter.

Until then, the proposal remains unresolved, as crypto firms and banks await clarity following the White House meeting.

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