Fed Proposes Streamlined Skinny Master Accounts for Crypto Firms

The Federal Reserve has proposed creating a new type of master account called a 'skinny' master account, aimed at providing faster and more streamlined access to the U.S. payment system for crypto and fintech firms.

This proposal comes after numerous applications from these firms were rejected or experienced long waits for approval.

According to a Congressional Research Services report published on August 4, only three Tier 3 applicants received a master account between December 2022 and May 2026, while roughly half of Tier 3 applicants withdrew or were rejected for master accounts.

The proposed 'skinny' master account would provide streamlined approval within 90 days and direct access to Fed-run payment systems but would not offer interest payments on balances, access to cash, check, or ACH services, or access to the Fed's discount window or intraday credit.