The White House convened crypto firms and big U.S. banks Tuesday afternoon to address a widening dispute over stablecoin yield and access to Federal Reserve payment rails. The meeting, viewed as a pivotal intervention, comes as the Fed’s proposed “skinny” master accounts deepen the divide between the two industries.
White House Talks: Policy Staff Take the Lead
According to Crypto In America, senior policy aides, not chief executives, represented the companies. Banking and crypto trade groups also sent delegates. Invitations went to Bank of America, JPMorgan, and Wells Fargo, with PNC, Citi, and U.S. Bank possibly included. Coinbase Chief Legal Officer Paul Grewal was confirmed on the crypto side.
While stablecoin yield topped the agenda, the core issue is the Fed’s “skinny” master account proposal. It would grant eligible fintech firms limited entry to Fed payment systems — a privilege traditionally reserved for insured depository institutions.
The ‘Skinny’ Master Account: Crypto’s Win, Banks’ Worry
Fed Governor Christopher Waller floated the idea in October, and the central bank opened public comments in December. Last Friday, 44 comment letters arrived, revealing a sharp split. Stablecoin issuer Circle argued the accounts could “strengthen payment system resilience.” The Blockchain Payments Consortium — whose members include Fireblocks, Polygon, Solana, and TON — voiced support.
Anchorage Digital, a crypto custodian, called the proposal “a positive step” but criticized caps on balance holdings, restrictions on interest earnings, and limited clearing house access. Bank groups focused on regulatory risk: The American Bankers Association flagged thin supervisory histories and inconsistent safety standards among eligible firms. The Colorado Bankers Association warned of elevated fraud exposure. Better Markets CEO Dennis Kelleher submitted a separate letter, branding the plan an “unjustified expansion of the Fed’s mandate.”
Next Steps: Fed to Weigh Comments, Target Q4 Guidance
Stablecoin issuers like Ripple and Circle stand to gain most from the skinny master accounts. But banking pushback is substantial. The Fed said it will review all submissions before drafting rules. Waller told Crypto In America he aims to release final guidance in the fourth quarter. The White House meeting’s outcome could shape the tone of that rulemaking.