Fed Proposes Streamlined Access to Payment Systems for Crypto Firms

The Federal Reserve has proposed introducing a new type of master account called 'skinny' master accounts, designed to provide faster and more streamlined access to the US payment system for crypto and fintech firms.

This move follows years of applications from these companies being rejected or experiencing long waits for approval. According to a Congressional Research Services report, only three Tier 3 applicants received a master account between December 2022 and May 2026, while roughly half were rejected or withdrew their applications.

The proposed 'skinny' master accounts would have limitations compared to traditional master accounts, including no interest payments on balances and limited access to Fed services. However, they would provide direct access to the Fed's payment systems within 90 days of approval, as opposed to the current lengthy process.