The Fed may open direct settlement rails to crypto firms as banks warn of liquidity risk

The Federal Reserve is considering new "payment accounts" that would allow non-bank institutions, including crypto firms, to access Fed settlement infrastructure directly. This move aims to reduce reliance on intermediary banks, a structural change highlighted by the recent approval of a master account for Kraken Financial. While the proposal promises increased efficiency for stablecoin issuers and exchanges, it faces significant pushback from the banking industry, which cites concerns over potential money-laundering risks, deposit volatility, and the loss of lucrative intermediation business. With a new executive order directing the Fed to review its payment framework, the central bank is attempting to balance innovation with financial stability.

(Source：CryptoSlate)