The U.S. Federal Reserve has issued a revised proposal to create limited master accounts — dubbed “skinny accounts” — that would grant cryptocurrency firms and other non-bank financial institutions direct access to central bank payment infrastructure. The move builds on a framework first pitched by Fed Governor Chris Waller in October 2025 and follows Kraken’s achievement as the first crypto bank to secure similar access through the Federal Reserve Bank of Kansas City in March 2026.

What Are Skinny Accounts and Why They Matter

Unlike full master accounts, which provide broad access to Federal Reserve services including intraday credit and the discount window, skinny accounts are deliberately constrained. Account holders would be prohibited from accessing intraday credit, earning interest on Fed balances, or operating without automated overdraft prevention controls. Closing balance limits would be tied to an institution’s expected payment activity, with maximum thresholds increased from earlier proposals.

For crypto firms, the significance is substantial. Direct access to the Fed’s payment rails would reduce dependency on traditional banking intermediaries — a persistent pain point for the digital asset industry. Companies that have historically struggled to maintain banking relationships due to perceived regulatory risk could potentially clear and settle payments with greater speed and lower cost.

Regulatory Timeline and Political Context

The proposal follows a timeline that began with the Fed’s December 2024 request for information on payment account structures. The current revised framework opens a 60-day comment period, inviting industry stakeholders and the public to weigh in on the terms and scope of these limited accounts.

Adding political momentum, President Trump issued a concurrent executive order requesting the Fed review how it grants payment account access to non-bank institutions and examine regional Fed independence in account approval decisions. This signals broader executive branch interest in expanding financial infrastructure access beyond the traditional banking perimeter.

Industry Precedent and Broader Implications

Kraken’s March 2026 milestone as the first crypto bank to obtain limited master account access through the Kansas City Fed provides a tangible proof of concept. The revised proposal would formalize and potentially broaden this pathway for qualified applicants across the industry. If adopted, it could reshape how digital asset companies interact with the U.S. financial system by removing the intermediary banking layer that has historically created friction and access barriers.

The bipartisan PACE Act, introduced earlier in Congress to expand crypto firms’ access to Fed payment services, provides additional legislative backing for the direction of this proposal.

Risks and Uncertainties

The proposal faces several hurdles before implementation. Traditional banking lobbies have historically opposed expanding Fed access to non-bank entities, citing systemic risk concerns and competitive fairness. The 60-day comment period could surface substantial opposition that delays or modifies the final framework. Additionally, the proposal’s restrictions — no intraday credit, no interest, mandatory overdraft controls — may limit practical utility for some crypto firms with large transaction volumes or liquidity needs. The concurrent executive order’s review of regional Fed independence could also introduce political dynamics that complicate the regulatory process.

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