US House Panel Debates Direct Fed Payment Access for Crypto, Fintech Firms

The House Financial Services Committee held a hearing on whether crypto and fintech firms should be allowed direct access to the Federal Reserve's payment system.

The Block reported on June 24 that the hearing centered on whether the Fed should allow crypto firms into its payment network through so-called skinny master accounts, which the central bank is reviewing.

A skinny master account would allow crypto banks and fintech firms limited direct access to the Fed's payment system. Most companies currently use payment services through commercial banks.

Representative Dan Meuser, a Republican, said access to the Fed's payment system is closely tied to the safety of the financial system. Lawmakers need to carefully consider who should be granted direct access to core payment infrastructure, he said.

Rachel Anderika, global chief operating officer at Anchorage Digital, the first federally chartered crypto bank in the US, told the hearing that the US needs a regulatory framework that supports innovation if it is to maintain its position as a global financial center.

Representative Stephen Lynch, a Democrat, cited crypto price volatility and the bankruptcy of fintech firm Synapse. He said crypto companies should be subject to minimum regulatory standards that ensure consumer protection and soundness before gaining access to the Fed's payment system.

President Donald Trump issued an executive order in May directing the Fed to review its policy on granting fintech firms, including crypto companies, direct access to the central bank's payment network.