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RegulationJune 10

Fed ‘skinny’ account proposal is test of institutional tug of war

Plan comes as tensions rise over whether fintechs should have access to critical payment rails
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Fed ‘skinny’ account proposal is test of institutional tug of warTrump’s latest fintech executive order throws down a ‘gauntlet’ to the newly sworn-in Federal Reserve leadership © Aaron Schwartz/AFP via Getty Images

US President Donald Trump’s executive order on fintech has put fresh pressure on the Federal Reserve over one of the most sensitive questions in finance: who should be allowed direct access to the central bank’s payment infrastructure?

The order, signed in May, calls for digital asset and fintech firms to be integrated into “traditional financial services and payment systems” and asks the Fed to examine whether non-bank financial companies should be given greater access to Reserve Bank accounts and payment services.

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