Home » Advocacy On The Move »

Breaking Down the ‘Skinny’ Payment Accounts Conversation

Posted by on December 15, 2025

During a recent House Financial Services Committee hearing on the Oversight of Prudential Regulators, Rep. Sam Liccardo (D-Calif.) questioned Federal Reserve Vice Chair for Supervision Michelle W. Bowman regarding the Fed’s consideration of a “skinny master account” for fintech institutions to access Federal Reserve payment rails, potentially by 2026. Liccardo raised concerns about fintech firms’ ability to use FedNow without partnering with traditional banks and asked whether Bowman supports expanded access for non-bank entities. Bowman noted that the Fed already has a risk-based framework for non-depository institutions and expressed openness to exploring broader access, while acknowledging that additional congressional authority may be required.

This discussion follows remarks by Federal Reserve Governor Christopher Waller at the inaugural Payments Innovation Conference, where he proposed a simplified “skinny” master account to enable payment innovators to connect to Fed systems without the full privileges of a traditional master account. Waller outlined key risk controls, including no interest on balances, balance caps, rejection of payments when balances reach zero, and exclusion from discount window borrowing or high-risk services.

Waller’s proposal represents a sharp shift in Fed policy towards fintechs and the decentralized finance (DeFi) community, consistent with the policy goals in the GENIUS Act. Governor Waller emphasized that this concept is in the exploratory stage, and that the Federal Reserve will engage with interested stakeholders to assess the benefits and drawbacks of this concept.

Posted in Advocacy on the Move, Regulatory Advocacy.

Jan21

Idaho CU Day at the Capitol

Our collective advocacy priority will be to showcase the impact Idaho credit unions are making across the state, while increasing our connection and relationship with our elected leaders at the Idaho Capitol.
Jan23

Monthly Small Credit Union Roundtable

This monthly roundtable create space for small credit union leaders to connect with peers, share best practices, celebrate wins, and engage in open dialogue with GoWest around the priorities and challenges facing small credit unions. 
Jan28

Washington CU Day at the Capitol

Our collective advocacy priority will be to showcase the impact Washington credit unions are making across the state, while increasing our connection and relationship with our elected leaders at the Washington Capitol.  
Feb5

Colorado CU Day at the Capitol

Our collective advocacy priority will be to showcase the impact Colorado credit unions are making across the state, while increasing our connection and relationship with our elected leaders at the Colorado Capitol.