The Fed Reviews Payment Access as Banks and Crypto Firms Collide

The Federal Reserve is weighing one of its most consequential plumbing changes in years: whether to grant fintech and crypto-focused institutions a new, limited form of direct access to its payment infrastructure.

The proposal, formally known as “payment accounts,” but widely called “skinny master accounts”, is now under review after the public comment period closed on February 6, 2026.

If approved, the accounts could go live as early as Q4 2026, opening Fed payment rails to a new class of institutions while stopping short of full central bank privileges.

What the Fed Is Proposing

Under the plan, eligible non-bank depository institutions would gain restricted access to core payment systems like Fedwire and, in limited form, FedNow. The goal is to modernize settlement infrastructure without extending the full benefits of a traditional master account.

Crucially, these “skinny” accounts are designed to reduce systemic risk by stripping away features banks rely on for balance sheet management and liquidity support.

A Sharp Divide in Public Feedback

The 44 public responses revealed a clear fault line between incumbents and challengers.

Traditional banks pushed back hard. Groups such as the American Bankers Association and the Bank Policy Institute warned that allowing non-traditional firms onto Fed rails could accelerate deposit flight from banks and weaken AML controls. They are calling for a 12-month track record of “safe and sound” operation before any new charter could even apply.

Fintech and crypto firms see the proposal as incomplete. Companies including Circle and Anchorage Digital broadly support the direction, arguing it aligns with congressional intent under the GENIUS Act. However, they criticize the exclusion of FedACH, which forces them to continue relying on commercial banks for high-volume ACH payments—undermining the promise of true operational independence.

How “Skinny” Accounts Differ From Full Master Accounts

The restrictions are not cosmetic, they fundamentally change how institutions could operate at the Fed.

The structure is meant to provide settlement access without monetary policy privileges, keeping non-banks firmly outside the Fed’s credit and liquidity backstops.

Timeline: Why Q4 2026 Matters

Federal Reserve Governor Christopher Waller, one of the plan’s strongest advocates, said in February 2026 that the Fed is moving “at startup speed” to finalize the rule. The central bank is expected to spend mid-2026 reviewing comments and completing formal rulemaking, with an operational target set for the fourth quarter of 2026.

Why This Debate Is Bigger Than Crypto

At its core, the fight over skinny master accounts is about who gets to plug directly into the U.S. financial system. For banks, it’s a question of competitive balance and systemic safety. For fintech and crypto firms, it’s about escaping dependency on intermediaries and building modern payment rails that run 24/7.

If approved, the accounts won’t revolutionize access overnight, but they could mark the first structural shift in decades toward a more open, modular Fed payment system.

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