The Federal Reserve has formally requested public input on payment accounts, known as ‘skinny master accounts.’
Notably, the new accounts would allow fintechs and crypto firms to access the Fed’s payment rails, FedNow and Fedwire, for faster clearing and settlement purposes, the regulator said in a statement.
The proposed payment account would be tailored to support innovation by serving the clearing and settlement needs of certain eligible institutions while also mitigating material risks to the Reserve Banks and payment system.
As part of risk‑management measures, the proposed accounts will not include credit access or interest features. They must also comply with strict anti‑money‑laundering rules.
To finalize this skinny‑account policy, the regulator will temporarily pause Tier 3 master‑account applications. These accounts are mostly sought by uninsured crypto firms and fintechs.
Trump presses the Fed to adapt to financial innovation
Interestingly, the announcement followed U.S. President Donald Trump’s recent executive order that instructed the Fed to review policies and integrate fintechs and crypto firms in the payment ecosystem.
That said, the special payment account for fintechs was first floated by Federal Reserve Governor Christopher Waller last October. The regulator has issued the latest update as a formal proposal. However, public feedback will run for the next sixty days, after which the proposal will be refined.
Afterward, the regulator will issue a formal final rule after reviewing the feedback. This will fall within the three-month review period issued by Trump’s order.
Reacting to the formal proposal, Sen. Cynthia Lummis hailed Governor Waller and added,
Encouraged by the proposal overall, and thank you for making commonsense changes to the proposal in response to stakeholder feedback.
If finalized and formalized as a rule, the proposal would mark a major structural win for crypto firms besides reinforcing credibility and mainstream adoption.
The move is part of laying the groundwork for the implementation of the GENIUS Act, the U.S. stablecoin law passed last year. The law is set to be effective from July 2026.
Even so, Fed Governor Michael Barr said he won’t back the skinny account proposal, noting that,
It does not provide sufficiently specific and robust safeguards to protect against the accounts being used for money laundering and terrorist financing by institutions we do not supervise.
Final Summary
- The Fed formally proposed a ‘skinny’ master account for fintechs and crypto firms to clear and settle their payments.
- The regulator has opened a 60-day feedback window for the proposal, which, interestingly, was issued after President Trump’s recent executive order.
