Fed proposes “skinny master accounts” for crypto and fintech firms

The U.S. Federal Reserve is seeking public feedback on a proposed “payment account,” informally known as a “skinny master account,” that would give certain eligible institutions — including crypto-related firms — limited access to the Fed’s payment systems.

Under the proposal, the accounts would allow payment clearing and settlement but would not carry the full privileges of traditional master accounts, such as earning interest on balances or having overdraft rights. The Fed says the model could support innovation while maintaining the safety of the payments system.

The idea has drawn support from crypto-friendly lawmakers and industry participants, who argue that direct access to Fed payment rails could make payments faster, cheaper, and provide greater regulatory clarity for the sector.

However, some Fed officials have raised concerns over money laundering and terrorist financing risks, saying the proposal lacks sufficient safeguards. The Fed will accept public comments for 45 days.