FameEX Hot Topics | Federal Reserve Seeks Feedback on Account Type Tailored for Crypto Firms

The U.S. Federal Reserve announced on December 19, 2025, that it is seeking public comment on a proposed "payment account"—informally known as a "skinny master account"—designed to provide limited access to its payment systems for eligible financial institutions, particularly those focused on innovative payments like fintechs and crypto firms. Fed Governor Christopher Waller emphasized that these accounts would "support innovation while keeping the payments system safe," responding to rapid developments in the payments landscape and new business models that often rely on third-party banks for access.

Unlike full master accounts held by traditional banks, the proposed payment accounts would offer basic clearing and settlement services but exclude key privileges such as earning interest on balances, accessing Fed credit or the discount window, and daylight overdrafts. Balance caps and other risk controls would apply to minimize impacts on the Fed's balance sheet. This tailored approach aims to lower overall risk, potentially allowing for streamlined reviews and faster approvals for qualifying institutions.

The initiative marks a potential shift toward greater inclusion of crypto-related firms in the Fed's infrastructure, reversing perceived barriers from the prior administration, often criticized as "Operation Chokepoint 2.0." Several payment-focused crypto companies could benefit, strengthening ties between digital assets and traditional finance. The Fed has also been exploring blockchain technologies to modernize payments, aligning with this pro-innovation stance.

However, not all Fed officials support advancing the proposal. Governor Michael Barr dissented, warning of risks, especially for non-directly supervised entities. The public comment period will last 45 days following publication in the Federal Register, with implementation potentially targeted for the fourth quarter of 2026 if approved.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.