Fintech firms and banks clash over Fed payment network access

U.S. fintech companies are at odds with traditional banks over expanded access to the Federal Reserve's payment network, Decrypt reported. The Fed previously announced it was seeking public comment on a proposal to introduce payment accounts—a streamlined version of master accounts—that would grant access to the central bank's payment network without complex requirements. While fintech firms highlight the potential for innovation and cost savings through direct payments, banks argue the move could allow stablecoin issuers and crypto-related companies to indirectly access the Fed's core infrastructure. They warn this could undermine the stability of the financial system and create regulatory blind spots. The outlet noted that the Fed's decision is expected to reshape the U.S. financial ecosystem.