Federal Reserve proposes limited master accounts long pursued by crypto firms

Policy Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Federal Reserve proposes limited master accounts long pursued by crypto firms The U.S. Fed issued a revised proposal on the structure of payment accounts, taking the next step to build on an earlier pitch for so-called skinny accounts. By Jesse Hamilton | Edited by Nikhilesh De May 20, 2026, 10:11 p.m. 2 min read Make preferred on Fed Governor Chris Waller floated the idea of "skinny" master accounts last October. (Kevin Dietsch/Getty Images) The U.S. Federal Reserve took another step toward special limited payment accounts that would give a lighter version of the master-account services the central bank offers to its fully-fledged banks, opening a comment period on the latest description of the new accounts. Firms with diverse business models can use such accounts to clear and settle payments to increase speed and reduce their costs, but without master-account status, the Fed explained in a Wednesday statement. The central bank, which supervises and regulates its member banks, had issued a request for information in December to start crafting the concept with an initial 45-day comment period, and this approach is "substantially similar to the prototype outlined" in that effort. Obtaining this enhanced access to the Fed's payment rails has been a significant goal within the crypto sector, and the Fed's earlier proposal was commonly referred to as "skinny" accounts . "Payment account holders would not have access to intraday credit or the discount window, would not earn interest on balances held at a Reserve Bank, and would only have access to payment services with automated controls to prevent overdrafts," the Fed said in the statement on its new proposal, which will be opened for a 60-day comment period. But in response to comments to the Fed since December, it did overhaul parts of the idea, noting that "closing balance limits would be based on an institution's expected payment activity and the maximum closing balance was increased." In March, Kraken became the first crypto bank to get a limited master account , though that access was granted by the Federal Reserve Bank of Kansas City and not under a federal rule from the Fed board in Washington. The Fed said it's now asked the regional banks to pause their consideration of certain applications while it finishes the rule. Just a day earlier, President Donald Trump issued a related executive order that asked the Fed to review how it grants uninsured depository institutions and non-bank financial firms access to payment accounts and services. This order also requested examination on the 12 regional Fed banks acting independently of the board to set up payment accounts. Federal Reserve More For You Latest Congressional swing at crypto tax reform would direct IRS to review de minimis exemptions By Nikhilesh De | Edited by Jesse Hamilton 4 hours ago The newest version of the Parity Act updates language around payment stablecoins and directs the IRS to report on how a de minimis exemption might work. Read full story Latest Crypto News Elon Musk's SpaceX held 18,712 bitcoin at fair value of $1.29 billion at end of Q1, IPO filing shows 39 minutes ago Securitize remains in the red even as record quarter fuels public listing plans 3 hours ago Latest Congressional swing at crypto tax reform would direct IRS to review de minimis exemptions 4 hours ago Prediction markets firms take heat in Senate Commerce hearing scrutinizing surge 4 hours ago Crypto custody firm Copper is looking to sell the company for $500 million 5 hours ago The Protocol: Ethereum Foundation's high-profile departures spark fresh debate 5 hours ago Top Stories Live markets: SpaceX files for massive IPO as Nvidia earnings beat Street expectations 7 hours ago Why Trump's bitcoin ETF plans likely collapsed before getting off the ground 5 hours ago South Korean funeral company reveals $33 million loss on leveraged ether ETF bet 7 hours ago Crypto campaign cash from Fairshake flooded Southern primaries, picked winners 7 hours ago Telegram group at center of Jane Street insider-trading allegations in Terra collapse 10 hours ago These bitcoin metrics suggest February’s $60,000 selloff may have marked the bottom 10 hours ago