Catenaa, Thursday, May 28, 2026- The US Federal Reserve formally requested public feedback on a proposal that could allow certain crypto and fintech firms direct access to the central bank’s payment and settlement systems, marking a major shift in how digital asset companies may connect to core US financial infrastructure.
The Fed said it has received growing requests from non-federally insured institutions seeking access to its payment rails and clearing systems. The proposal introduces a specialized payment account structure designed to support financial technology innovation while limiting risks to the banking system.
The accounts, commonly known as “master accounts,” would allow eligible firms to settle transactions directly through Federal Reserve infrastructure instead of depending on intermediary banks.
Under the proposal, account holders would gain access to payment services but would not receive interest on balances, discount window access or intraday credit support from the Fed.
The proposal follows President Donald Trump’s executive order issued earlier this week directing federal agencies to modernize regulations surrounding digital assets and financial technology integration.
Trump instructed the Federal Reserve to examine whether crypto firms and fintech companies should receive broader access to Reserve Bank payment systems and settlement accounts.
The White House argued that existing financial rules may unnecessarily restrict innovation and prevent blockchain-based financial infrastructure from integrating into mainstream payment networks.
Federal Reserve officials said the current proposal closely resembles a framework first introduced in December 2025 but includes revisions such as a higher maximum closing balance.
Direct Fed access has become one of the crypto industry’s most sought-after objectives because it would reduce dependence on traditional banking intermediaries.
Industry executives argue that master accounts could improve payment speed, lower settlement risks and strengthen operational stability for regulated crypto firms.
The issue became more prominent after the Kansas City Federal Reserve approved a limited-purpose account for Kraken parent company Payward earlier this year, allowing restricted access to US payment rails.
Supporters said such access could modernize dollar settlement systems for blockchain finance and stablecoin infrastructure.
Traditional banking groups remain strongly opposed to expanding Fed account access beyond insured depository institutions.
Several banking lobby organizations warned earlier this year that granting crypto firms direct payment access could weaken banking oversight and expose the financial system to operational and liquidity risks.
Critics also argued that firms operating outside traditional banking supervision should not receive privileges historically reserved for regulated banks.
The Fed said Reserve Banks are being encouraged to temporarily pause decisions involving Tier 3 institutions, a category including crypto firms, until the policy review process is completed.
The debate reflects broader political and financial tensions surrounding digital asset regulation in the United States.
Lawmakers, regulators and financial institutions remain divided over how blockchain-based payment systems should integrate into the banking sector while preserving financial stability and anti-money laundering safeguards.
At the same time, stablecoins, tokenized deposits and blockchain settlement networks are becoming increasingly tied to mainstream banking operations.
Master accounts are specialized accounts held directly at Federal Reserve banks. They allow financial institutions to access central bank payment systems used for clearing and settling US dollar transactions.
Historically, only federally regulated depository institutions such as commercial banks and credit unions qualified for direct access. Crypto firms and fintech companies instead relied on intermediary banking partners to connect to payment infrastructure.
The debate intensified after several digital asset firms pursued limited-purpose banking charters and sought direct settlement access from the Federal Reserve system. Regulators later introduced proposals for so-called “skinny” master accounts, which offer restricted payment access without broader central bank privileges.
The issue also became politically charged after the rapid growth of stablecoins and blockchain payment networks raised questions about whether digital asset firms should operate alongside traditional banking infrastructure.
Federal regulators are now under growing pressure to modernize financial rules as tokenized finance, stablecoins and blockchain-based settlement systems expand across global markets.
