Federal Reserve Proposes Limited Payment Accounts for Crypto Firms

The US Federal Reserve has proposed a revised structure for limited payment accounts, also known as 'skinny' accounts, which would allow eligible crypto firms to access the Fed's payment system. The proposal, which is open for comment for 60 days, does not include intraday credit or interest on balances and has adjusted closing balance limits based on expected payment activity.

The move comes as President Trump signed an executive order directing the Federal Reserve to review whether crypto firms can access master accounts within 120 days. Master accounts at the Federal Reserve let eligible institutions settle payments directly through the central bank rather than routing transactions through correspondent banks.

Eligible firms would have limited access to the Fed's payment system, allowing them to clear and settle payments more efficiently without having to go through traditional banking intermediaries. The proposal aims to promote consistency before implementing a final framework for 'skinny' accounts. Regional Reserve Banks have been asked to pause decisions on new Tier 3 account applications until December 2026.