CoinDesk
The U.S. Federal Reserve issued a revised proposal on Wednesday to create a new category of limited "payment accounts" at the central bank — a lighter version of master-account access long pursued by crypto firms and other non-bank financial institutions. The 60-day comment period opens what the Fed calls a "substantially similar" framework to the prototype it floated in December, when it first invited industry feedback on the concept commonly referred to as "skinny accounts."
Under the proposal, payment account holders would clear and settle transactions through the Fed's rails without earning interest on balances, accessing the discount window or drawing intraday credit, with automated controls preventing overdrafts. The Fed did revise parts of the December concept in response to comment letters, increasing the maximum closing balance and tying the limit to an institution's expected payment activity rather than a flat cap.
Why it matters
The structural win is not the account itself but the rule. In March, Kraken became the first crypto bank to land a limited master account from the Federal Reserve Bank of Kansas City — a regional approval that ran ahead of any federal framework. The Fed has now asked the 12 regional Fed banks to pause consideration of similar applications while the board finishes the rule, centralising what had become a fragmented, district-by-district process.
A day before the Fed's announcement, President Trump signed an executive order directing the central bank to review how it grants uninsured depository institutions and non-bank financial firms access to payment accounts and services, and to examine the role of regional Fed banks acting independently of the board. The two moves land together: the executive order sets the political ceiling, the Fed's proposal builds the floor.
Market impact
For crypto firms, the practical change is a federal pathway to Fed rail access without becoming a full bank — custody, settlement and clearing without the regulatory perimeter of a bank holding company.
Frequently asked questions
-
What is a Fed master account, and why do crypto firms want one?
A master account gives a bank direct access to the Fed's payment rails for clearing and settlement. Crypto firms have lobbied for years to obtain that access without becoming fully regulated banks, because Fed-rail settlement reduces cost and counterparty risk compared with relying on intermediary banks.
-
How is a 'skinny' or payment account different from a full master account?
A payment account would let holders clear and settle payments through the Fed, but without interest on balances, access to the discount window, or intraday credit, and with automated overdraft controls. It is a lighter tier of access, designed for non-bank institutions that need rail connectivity but not the full…
-
What did the Fed change between the December prototype and the new proposal?
In response to comment letters, the Fed raised the maximum closing balance a payment account could hold and tied the limit to an institution's expected payment activity rather than a flat cap. The Fed described the overall framework as "substantially similar" to the December prototype.
-
How does this proposal interact with Kraken's limited master account?
Kraken became the first crypto bank to receive a limited master account in March, from the Federal Reserve Bank of Kansas City rather than the board in Washington. The Fed has now asked all 12 regional banks to pause consideration of similar applications while the federal rule is finalised, centralising the process…
-
How does Trump's executive order relate to the Fed's proposal?
A day before the Fed's announcement, President Trump signed an executive order directing the central bank to review how uninsured depository institutions and non-bank financial firms gain access to payment accounts, and to examine the role of regional Fed banks acting independently of the board. The order sets the…
CoinTelegraph
WuBlockchain
WatcherGuru
TheBlock
CryptoSlate