Crypto, Banks Clash Over Fed’s Proposed ‘Skinny’ Accounts Ahead of White House Crypto Meeting

Crypto firms and major U.S. banks will meet Tuesday afternoon at the White House as a dispute grows over stablecoin yield. However, there have been disagreements over the Federal Reserve’s proposed “skinny” master accounts.

White House Crypto Meeting Raises Stakes Amid Clash Over Fed ‘Skinny’ Accounts

According to Crypto In America, the White House scheduled the meeting to broker an agreement between crypto firms and banks. The gathering will include senior policy staff, not company CEOs. It will also include representatives from banking and crypto trade groups.

Sources said Bank of America, JPMorgan, and Wells Fargo were invited. Invites may also have gone to PNC, Citi, and U.S. Bank. Coinbase Chief Legal Officer Paul Grewal is also expected to attend.

While stablecoin yield is set to be the focus of the White House crypto meeting, the Fed’s proposed “skinny” master accounts are also creating a divide between banks and the crypto industry. The accounts would give eligible fintech firms limited access to the Fed’s payment rails. The proposal has led to a split between crypto companies and traditional bank groups.

That divide became clear after 44 comment letters reached the Fed on Friday. Crypto groups largely supported the proposal. However, bank associations responded with strong caution. These responses follow the Fed’s request for public input last December after Waller first floated the idea in October.

Comment Letters Expose Divide Between Crypto and Banks

Stablecoin issuer Circle argued the accounts could “increase the resiliency of the overall payment system.” Similarly, the Blockchain Payments Consortium backed the plan. The consortium includes Fireblocks, Polygon, Solana, and TON.

The consortium said the accounts could reduce “uncompetitive practices” and limit risk concentration at a few banks. However, not every crypto firm supported the plan without concerns. Anchorage Digital called the proposal a “positive step,” but criticized key restrictions.

It said beneficiaries would still lack direct access to the Fed’s automated clearing house. Anchorage also pointed to limits on holding balances and earning interest on reserves. Bank groups raised broader regulatory concerns. The American Bankers Association said many eligible entities lack long-run supervisory history. It also warned that federal safety-and-soundness standards remain inconsistent across applicants.

The Colorado Bankers Association also warned the accounts could “open up a window for expedited fraud.” Meanwhile, Better Markets CEO Dennis Kelleher submitted his own letter. He described the proposal as “a reckless giveaway” that expands the Fed’s mandate.

The proposed skinny master accounts would notably benefit stablecoin issuers such as Ripple and Circle, who use stablecoins for their payment services. The Fed said it will consider the comment letters before writing formal rules. Waller told Crypto In America he hopes to release the rules in the fourth quarter.