Fed Pushing Ahead With 'Skinny' Master Account Plan for Crypto Banks
The Federal Reserve is advancing a plan to offer "payment accounts"—a limited version of master accounts—for innovation-focused and crypto banks. These accounts grant faster access to the Fed’s payment system but would not allow for interest, Fed credit access, or unrestricted balances. The proposal, designed to encourage financial innovation while safeguarding the payments system, is now open for 45 days of public comment. If implemented, this initiative would streamline national operations for state-licensed crypto banks, marking a significant shift from previous Fed resistance due to concerns over financial system stability. Key candidates for the next Fed chair, including the initiator of this plan, appear supportive, potentially aligning the Fed’s approach more closely with pro-crypto administration policies.
