Fed seeks input on account type attractive to crypto firms

The US Federal Reserve is requesting public input on a proposed "payment account," sometimes called a "skinny master account," designed to allow fintechs and crypto firms access to the central bank's systems without requiring the typical, stringent approvals. Fed Governor Christopher Waller stated this move supports innovation while maintaining payment system safety, reflecting rapid developments in the payments industry. However, Governor Michael Barr expressed concerns about potential risks related to money laundering and terrorist financing safeguards for institutions the Fed does not directly supervise. Crypto payment firms like Circle, Coinbase, Kraken, and Block could benefit significantly from this access. Importantly, these new payment accounts will not have the same privileges as traditional master accounts; they will not earn interest, lack access to Fed credit, and will be subject to balance caps. The Fed expects this feature to be operational by the fourth quarter of 2026, with a 45-day comment period open for public feedback.

(Source：Cointelegraph)