Federal Reserve Updates Proposal for Crypto-Friendly Master Account

The US Federal Reserve has taken a significant step towards integrating cryptocurrency into the mainstream financial system by updating its proposal for a 'skinny' master account. The updated proposal, published on May 24th, outlines how the central bank plans to grant fintech and crypto firms access to its payment rails without requiring them to be fully chartered banks.

The move is part of the Fed's efforts to promote greater integration between digital assets and existing payment networks. As part of this effort, President Donald Trump signed an executive order on May 23rd directing regulators to review their existing policies and identify rules that might block fintech firms from partnering with regulated entities.