FameEX Hot Topics | Fed Consults Industry on Specialized Accounts to Attract Cryptocurrency Companies

On December 19, 2025, the U.S. Federal Reserve launched a public consultation on a new type of account called a "payment account," sometimes referred to informally as a "skinny master account." This limited-access option is intended for innovative financial institutions, including fintechs and cryptocurrency-related firms, allowing them direct access to the Fed's payment systems without the full privileges or rigorous approvals required for traditional master accounts.

Fed Governor Christopher Waller described the proposal as a balanced approach that would "support innovation while keeping the payments system safe." He noted that rapid evolution in the payments sector—driven by new technologies and business models—has left many non-bank providers dependent on sponsor banks for Fed access. The payment account aims to address this by offering a tailored, lower-risk alternative that could receive expedited review.

Key distinctions from full master accounts include no interest on balances, no access to the discount window or emergency credit, no daylight overdrafts, and strict balance caps. These restrictions are designed to protect the Federal Reserve's balance sheet while still enabling efficient clearing and settlement for eligible entities.

The proposal represents a notable policy shift, particularly for the cryptocurrency industry. Many crypto firms have accused the previous administration of orchestrating "Operation Chokepoint 2.0"—an alleged effort to sever their banking relationships. Greater inclusion via payment accounts could bridge digital assets and traditional finance more effectively. The Fed's ongoing experiments with blockchain-based payment technologies further underscore its commitment to modernization and innovation in this space.

Despite the enthusiasm, internal disagreement exists. Governor Michael Barr expressed concerns about potential risks, especially for institutions not directly supervised by the Fed. The 45-day public comment period begins upon publication in the Federal Register. If approved, Waller indicated that the new payment accounts could become operational as early as the fourth quarter of 2026.

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