Arthur Hayes Warns Fed’s ‘Skinny’ Account Proposal Could Destabilize U.S. Banking System
Federal Reserve Governor Christopher Waller's proposal for a 'limited-access' master account targeting fintech and crypto firms has sparked controversy. The plan would allow qualified entities to bypass traditional banks and directly access the Fed's payment systems—potentially reducing stablecoin issuers' reliance on commercial banking partners.
BitMEX co-founder Arthur Hayes framed the move as politically motivated, suggesting it could erode the traditional banking model. 'Imagine if Tether didn’t need to rely on a TradFi bank for its existence,' Hayes wrote on X, characterizing the proposal as 'Trump’s revenge for debanking his family.' The change could disproportionately benefit decentralized players while weakening incumbent financial institutions.
Industry observers note the policy shift might aid crypto-native firms like Custodia Bank and Kraken, which have faced challenges securing full master accounts. A 'lite' version could streamline access for innovative payment providers, though the long-term implications for banking stability remain contested.
