Federal Reserve Proposes Limited Access for Fintech and Crypto Firms

The Federal Reserve has proposed the creation of 'skinny master accounts' for fintech and crypto firms, allowing them to access its payment systems in a limited capacity.

These new accounts would enable non-bank institutions to send and receive payments through Fedwire and FedNow, but with restrictions. No interest would be paid on balances, and there would be limits on how much money can sit in the account overnight.

The proposal aims to strike a balance between giving fintechs and crypto firms direct access to the payment system while maintaining the stability of the financial system. The Fed has received feedback from various stakeholders, including banks and fintech trade groups, which are likely to shape the final rule.