Big week for crypto and payments: the Fed updated its plan to give nonbank fintechs and crypto firms limited access to central bank payment accounts, and President Trump signed two executive orders pushing federal agencies to fold digital assets more tightly into the existing U.S. payments and anti-money-laundering frameworks. What happened - The Federal Reserve published an updated proposal for a “skinny” master account—an approach first floated in December 2025—outlining how it might let fintech and crypto companies use Fed payment rails without becoming full OCC‑chartered banks. - On Tuesday, President Trump signed two executive orders: one directing agencies to modernize regulations so crypto can better integrate with payment systems; the other ordering the Treasury and regulators to tighten Bank Secrecy Act (BSA) enforcement and issue guidance to banks and other entities. Why it matters Getting access to Federal Reserve payment systems is one of crypto’s long‑standing industry goals. These moves could materially bring regulated crypto firms closer to mainstream payments infrastructure—while also heightening compliance and enforcement expectations that could catch crypto and DeFi platforms up in broader anti‑money‑laundering efforts. What the Fed proposal says (and doesn’t) - The updated skinny master account proposal provides more detail on how the Fed envisions granting access to payment accounts for eligible fintechs and crypto firms without requiring them to become full-service, OCC‑chartered banks. - The Fed’s review also considers how uninsured depository institutions would access accounts and asks Federal Reserve member banks to evaluate whether they can independently provide payment accounts to nonbank entities. - The Fed can do a lot administratively, but Congress may still need to pass legislation to define precisely which entities qualify for such accounts. What the executive orders direct - The fintech-focused order tells federal regulators to reexamine rules that might block fintech firms from partnering with regulated entities, and to review how the Fed handles access for uninsured depository institutions. - The BSA-focused order directs the Treasury and regulators to issue guidance and an advisory aimed at curbing illicit cross‑border finance and certain abuses. The advisory calls out things like payroll tax evasion, shell companies, and the “strategic use of unregistered money services businesses, third‑party payment processors, or peer‑to‑peer platforms to facilitate ‘off‑the‑books’ wage payments intended to bypass BSA reporting thresholds or tax obligations.” - The BSA order does not name cryptocurrency or DeFi explicitly, but Nicholas Anthony, a Cato Institute research fellow, warns that guidance could sweep in crypto platforms because of the Treasury’s broad BSA authority. Where legislation fits in - The Senate Banking Committee recently advanced the Clarity Act, but full Senate action was expected in the coming month and has been slowed by the Memorial Day recess and a crowded floor calendar. - Lawmakers face tight time: roughly 19 working days in June, 15 in July and only a few in August before the summer hiatus. Competing must‑do items include a reconciliation package, renewal of the Foreign Intelligence Surveillance Act (expiring mid‑June), and potentially a housing bill. - The Senate’s departure was in part due to fights over funding requests from the White House—initially a proposed $1 billion for an East Wing ballroom and a later $1.8 billion request described by opponents as a “weaponization fund”—which complicated negotiations on a Department of Homeland Security funding reconciliation bill. - Those political negotiations, plus unresolved ethics provisions in the market structure bill, could delay or reshape any final legislative outcomes for crypto access and clarity. What to watch next - Treasury guidance under the BSA and any Fed rule‑making or pilot decisions on skinny master accounts. - Congressional action on the Clarity Act and whether lawmakers add, strip, or delay provisions affecting crypto. - How regulators interpret the new directives—particularly whether enforcement priorities expand to capture crypto platforms and peer‑to‑peer services. Got tips or feedback? Email nik@coindesk.com, find me on Bluesky @nikhileshde.bsky.social, or join the group conversation on Telegram. See you next week. Read more AI-generated news on: undefined/news