Fed Teases New Account Model That Could Rewrite Crypto’s Banking Access
The Federal Reserve has opened the door to a brand new kind of central checking account that would reshape how crypto and payment-focused corporations entry the US banking system, beneath a tailor-made approval framework.
On Friday, the Fed requested public enter on a proposed “fee account.”
The account would sit alongside, however stay distinct from, the normal grasp account that banks presently use to entry Federal Reserve providers.
The remark interval will stay open for 45 days following publication within the Federal Register.
Fed Weighs Limited-Use Accounts to Ease Strain on Payment Rails
The proposal displays how adjustments within the funds trade have begun to pressure the Federal Reserve’s long-standing account framework.
New enterprise fashions, together with payment-focused fintech corporations and crypto corporations, have sought direct entry to the Fed’s fee rails with out participating in lending, deposit-taking, or different actions related to full-service banks.
The Fed stated the fee account is designed to fulfill these restricted wants whereas lowering dangers to the broader monetary system.
Under the proposal, fee accounts wouldn’t earn curiosity, wouldn’t present entry to Federal Reserve credit score services, and can be topic to steadiness caps.
The Fed is contemplating limits comparable to an in a single day cap equal to the lesser of $500 million or 10% of an establishment’s property.
Account holders would even be prohibited from providing correspondent providers or settling transactions on behalf of different establishments.
Use of the account can be restricted to clearing and settling the establishment’s personal funds, a design meant to decrease supervisory and systemic danger and permit for a extra streamlined overview course of than is required for full grasp accounts.
Federal Reserve Governor Christopher Waller stated the proposed account construction might encourage innovation whereas sustaining the protection and effectivity of the funds system.
He described the request for info as an preliminary step towards modernizing central financial institution infrastructure, noting the Fed’s ongoing work with blockchain-based instruments.
Waller first urged the Fed to explore payment accounts for clearing and settlement in October.
Fed proposes “fee accounts” granting stablecoin issuers direct Fed entry with out banks as Ripple and Anchorage Digital purposes might see quicker choices.#Fed #Stablecoinhttps://t.co/RhCdQ7ZVaV
— Cryptonews.com (@cryptonews) October 21, 2025
The Fed emphasised that the brand new mannequin wouldn’t alter the authorized eligibility necessities for entry to Federal Reserve providers.
Instead, it will create a narrower entry level throughout the Fed’s present single grasp account framework, which usually permits one grasp account per chartered establishment, supplemented by informational subaccounts that don’t maintain separate balances.
After Years of Resistance, U.S. Bank Regulators Ease Crypto Restrictions
Not all Fed officers help the fee account proposal. Governor Michael Barr warned that increasing entry with out clearly outlined safeguards might enhance dangers associated to cash laundering and terrorist financing, significantly for establishments the Fed doesn’t instantly supervise.
The transfer follows years of controversy surrounding the Federal Reserve’s dealing with of crypto-related purposes.
In 2023, the Fed adopted a coverage that created a robust presumption towards many crypto actions and denied Custodia Bank’s software for a grasp account after a 27-month overview.
Custodia, a Wyoming-chartered particular objective depository establishment, has argued that the denial violates the Monetary Control Act, which states that fee providers “shall be accessible” to eligible establishments.
The financial institution escalated its authorized struggle this month, seeking an en banc review from the Tenth Circuit Court of Appeals after a divided panel upheld the Fed’s choice.
Custodia Bank petitions full appeals courtroom to overview Federal Reserve’s grasp account denial, citing constitutional issues and federal legislation violations.#Crypto #Bank #Fedhttps://t.co/KyM8MlA1WC
— Cryptonews.com (@cryptonews) December 16, 2025
Since then, the regulatory posture has begun to shift. On December 8, the Federal Reserve withdrew its 2023 policy statement that successfully barred banks from most crypto actions.
Beyond the courtroom, federal regulators have begun dismantling different boundaries going through crypto corporations, together with addressing inappropriate restrictions on lawful businesses and approving several crypto firms to pursue national trust bank charters.
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