Fintechs Back Fed Payments Account That Could Open Rails to Crypto Firms
Financial technology trade groups, led by the American Fintech Council, are urging the Federal Reserve to allow certain non-bank financial firms direct access to U.S. payment rails through limited Federal Reserve payment accounts. These accounts would permit eligible institutions to settle payments directly, without granting full banking privileges, such as access to the Fed’s discount window or deposit-taking capabilities. Fintech advocates argue this would lower costs, speed up settlements, and reduce reliance on sponsor banks. In contrast, major bank groups warn these accounts could undermine financial stability by enabling lightly regulated firms—potentially including stablecoin issuers and crypto firms—to operate outside the federal safety net. Banks cite risks such as increased run risk, weakened credit intermediation, and challenges to anti-money laundering controls. The Fed is currently evaluating public feedback and how this issue is resolved may reshape the relationship between banks, fintechs, and crypto companies in the U.S. payments landscape.
