Fed seeks comment on allowing crypto access to master accounts

The Federal Reserve has asked for public comment on a proposal to create a new type of Reserve Bank payment account that could give some crypto firms and other nonbank institutions direct access to master accounts and core U.S. payment systems.

In a Wednesday statement, the Fed said it has received a growing number of requests for access to Reserve Bank payment services from institutions that are not federally insured. Under the Federal Reserve Act, Reserve Banks may approve or deny applications for master accounts, which are the primary clearing and settlement accounts used by depository institutions.

The Fed described the proposed account as one that would serve the clearing and settlement needs of eligible institutions while limiting material risks to Reserve Banks and the payment system. Account holders would be able to use payment services with automated controls, but would not receive intraday credit, access to the discount window, or interest on balances held at the Fed. Direct access to master accounts would let crypto firms connect to core payment rails without relying on intermediary banks.

The proposal is substantially similar to a version the Fed released in December 2025, though it includes changes such as a higher maximum closing balance. Qualified applicants for current Reserve Bank accounts are generally licensed depository institutions; the new account would be available only to entities that meet the Fed’s eligibility criteria.

President Donald Trump issued an executive order on Tuesday directing the Fed to review and update rules to allow greater integration of digital assets and new technology into traditional financial services and payment systems. The order asked the Fed to evaluate its regulatory framework for access to Reserve Bank payment accounts and to explore options for extending access to fintech and crypto firms.

While the Board develops policy on the proposal, it has asked Reserve Banks to pause decisions on applications from Tier 3 institutions — a category that includes many crypto firms — until the Board completes its review. The Fed requested public comment to inform its policy work and said it will consider feedback before issuing any final rule. The central bank did not provide a timeline for a final decision.