Federal Reserve Reviews Expanded Access to U.S. Payment Infrastructure

The Federal Reserve has formally opened a public consultation on a proposal to establish a new category of payment account that could allow certain crypto and fintech firms to access the Fed’s clearing and settlement infrastructure.

In a statement released Wednesday, the central bank said it has received a growing number of requests from institutions that are not federally insured but are seeking direct access to Federal Reserve payment services.

According to the proposal, the new account structure is intended to support financial innovation while mitigating risks to Reserve Banks and the broader payment system.

Proposed Accounts Could Expand Crypto Access to Fed Rails

The proposed payment account would provide eligible institutions with access to payment services through automated controls, although important restrictions would remain in place.

Under the framework, account holders would not receive intraday credit, access to the Federal Reserve discount window, or interest on balances held at the central bank.

Despite these limitations, the proposal carries major implications for the digital asset sector because access to these accounts — commonly referred to as “master accounts” — would allow crypto firms to connect directly to core U.S. payment rails without relying on intermediary banking partners.

The Federal Reserve said the latest proposal is substantially similar to a version first introduced in December 2025, though it includes revisions such as an increase in the maximum permitted closing balance.

Regulatory Shift Follows Trump Executive Order

The consultation follows a broader policy push from Donald Trump, who signed an executive order earlier this week directing federal regulators and the Federal Reserve to review rules that may be restricting innovation in digital finance.

The order specifically instructed the Fed to evaluate its regulatory framework governing access to Reserve Bank payment accounts and services, while exploring pathways to expand access for fintech and crypto-related institutions.

The move signals growing political momentum behind integrating digital asset infrastructure more directly into traditional financial systems in the United States.

Pause Requested on Crypto-Related Applications

As the policy review continues, the Federal Reserve Board said it is encouraging Reserve Banks to temporarily pause decisions on applications submitted by Tier 3 institutions — a category that includes crypto firms — until the broader policy framework is finalized.

Under the Federal Reserve Act, Reserve Banks currently retain authority to approve or deny access requests for Fed accounts. Historically, eligibility has largely been limited to licensed depository institutions.

The latest consultation therefore represents a potentially significant shift in how the U.S. central banking system approaches non-bank participation in core payment infrastructure.

Growing Debate Over Financial Infrastructure Access

The proposal reflects a wider debate underway globally around whether digital asset firms should be permitted direct access to central banking and settlement systems traditionally reserved for commercial banks.

Supporters argue that direct access could reduce settlement friction, improve payment efficiency, and strengthen regulated digital asset activity within the formal financial system.

Critics, however, continue to raise concerns around financial stability, operational risk, and the implications of extending central bank infrastructure access to firms operating in emerging digital asset markets.

The outcome of the consultation could therefore shape not only the future of crypto banking in the United States, but also broader global approaches to integrating blockchain-based financial infrastructure into traditional payment systems.