PANews June 25 news, according to The Block, the U.S. House Financial Services Committee held a hearing on Wednesday to discuss the Fed’s proposal to offer crypto and fintech companies a “slimmed-down account (i.e., a streamlined master account)” for direct access to the central bank’s payment system. The crypto industry broadly supports the proposal, while community banks worry about security measures and the lack of equivalent regulatory compliance requirements for novel financial institutions.

During the hearing, Representative Dan Meuser noted that access to the Fed’s payment system is no small matter and requires careful decisions about who should receive direct access. Rachel Anderika, Global Head of Operations at Anchorage Digital, called for a regulatory framework that supports innovation. Democratic Representative Stephen Lynch cited the Synapse bankruptcy case and Bitcoin’s sharp swing this year from $100,000 down to $59,000, questioning how the financial system could safely handle such risks. In March this year, the Kansas City Fed already approved a limited-purpose account for Payward, Kraken’s parent company, triggering extensive debate over how far crypto and fintech firms should be granted direct access to Fed services.