The U.S. Federal Reserve is taking a small but meaningful step toward reshaping how crypto-focused banks operate, as it moves closer to allowing so-called “skinny” payment accounts. While the term sounds technical, the idea is fairly simple: banks that mainly handle payments including crypto banks could get limited access to the Fed’s system without being full-scale lenders.

For crypto firms, this matters a lot. One of the biggest challenges they face today is basic banking access. Many crypto banks don’t want to make loans or take traditional credit risk. They just want a safe place to hold customer funds and move money efficiently. Skinny payment accounts are designed exactly for that purpose, focusing on settlement and payments rather than lending.

If approved, this shift could reduce reliance on large commercial banks that often hesitate to work with crypto companies. It may also lower systemic risk, since these institutions wouldn’t be allowed to use deposits for risky activities.

That said, the Fed is moving carefully. Regulators remain cautious about financial stability, compliance, and oversight. This isn’t a green light for crypto banks to operate freely it’s more like a controlled experiment.

Still, for the crypto industry, it’s a quiet but important signal: regulators are starting to adapt the system instead of forcing crypto to fit old banking models.