Catenaa, Monday, February 09, 2026- The Federal Reserve plans to roll out a limited version of its master account framework before the end of the year, even as broader crypto market legislation remains stalled in Congress and digital asset prices retreat from recent highs, Federal Reserve Gov. Christopher Waller said early today.
The so-called skinny master account would give eligible institutions constrained access to the Fed’s payment systems without extending full banking privileges. Unlike traditional master accounts, the proposed version would not pay interest on balances, would bar access to the discount window and would operate under tighter functional limits.
The Fed’s timeline follows the close of a public comment period that revealed sharp divisions between crypto-focused firms and community banks. Nontraditional finance companies argue limited access could lower settlement costs and reduce dependence on correspondent banks. Banking groups counter that even partial access could increase financial stability risks.
Waller indicated the central bank is still reviewing feedback but aims to finalize the framework this year if outstanding issues can be resolved. The initiative advances independently of congressional efforts to establish comprehensive rules for the crypto sector.
On Capitol Hill, momentum behind a broad market structure bill known as Clarity has slowed. While the House passed its version last year, Senate progress has stalled amid disagreements over regulatory authority, ethics concerns tied to political connections and disputes involving stablecoin incentives.
The delay has added uncertainty for markets already under pressure. Bitcoin, which reached a record above $126,000 last year, has since pulled back to around $70,000, according to market data. Waller said recent volatility reflects fading optimism that clear federal rules would arrive quickly.
The Fed has framed the skinny master account as a technical adjustment rather than a policy endorsement of crypto activity. Still, its rollout could reshape how fintech and crypto-linked firms interact with the US payments system while lawmakers remain divided on broader oversight.
