TLDR Tech / Fintech
Who gets a direct line to the Fed? Congress weighs risks of Fed skinny accounts for crypto and fintech firms
Congress is debating whether crypto and fintech firms should receive limited direct access to Federal Reserve payment rails through so-called “skinny” master accounts. Supporters argue direct access would modernize payments and reduce dependence on partner banks, while critics warn that granting bank-like powers to less-regulated firms could introduce safety, soundness, consumer protection, and recordkeeping risks similar to the Synapse collapse.
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