Fed opens comment on crypto payment accounts

TLDR

The Federal Reserve has invited public comment on a new payment account that could give some crypto-linked institutions limited direct access to its payment rails.

1. The Fed proposed restricted payment accounts that allow clearing and settlement access but block credit, interest, and overdrafts for eligible non?bank institutions.
2. Crypto and fintech firms could gain more direct access to Fedwire/FedNow, but only via qualifying charters and under tighter controls, while many Tier 3 applications stay paused.
3. The rule will be shaped by a 60?day comment process and political pushback, with final decisions and any rollout targeted around late 2026.

Deep Dive

1. What The Fed Proposed

The Fed outlined a new category of limited payment accounts that would let eligible firms move money directly on its payment systems while stripping out core bank privileges like discount-window access, intraday credit, and interest on balances. These accounts are described as a streamlined alternative to full master accounts and are focused purely on clearing and settlement, with automated controls that prevent overdrafts and caps on overnight balances, such as the lesser of 500 million dollars or 10 percent of the holders assets in earlier drafts.

The framework is substantially similar to the prototype floated in December 2025 and is now in a 60?day public comment period, according to the Feds own notice and follow?up coverage of the new limited payment accounts.

2. How This Affects Crypto Access

The proposal explicitly targets legally eligible institutions, which can include crypto?linked banks and fintechs, and would let them connect directly to Fed clearing systems without always relying on correspondent banks. A detailed overview notes that account holders would still face strict limits such as no interest, no intraday credit, and automated overdraft blocks, while legal eligibility itself is unchanged and still governed by existing statute and charters, not by this rule alone.

A separate summary highlights that these are restricted payment accounts for fintech and crypto?linked banks, and that regional Fed banks have been asked to pause many Tier 3 master?account decisions (a category that includes most novel crypto charters) until the rulemaking is completed around the end of 2026, which keeps near?term access constrained even as a long?term pathway opens up through these restricted payment accounts.

3. Politics, Timeline, And Risks

The move follows an executive order from President Donald Trump instructing regulators to modernize access rules for fintech and digital asset firms and to review barriers that favor incumbents in payment services, as outlined in the White House?focused executive order summary. At the same time, some Fed officials and banking groups are already warning that the proposal may not fully address money?laundering and stability risks, setting up a contentious comment period.

Implementation is not immediate. Current guidance suggests a comment window now, additional revisions afterward, and a target of late 2026 for completing the policy, with a temporary pause on many Tier 3 decisions in the meantime.

Conclusion

The Fed is edging toward giving crypto?linked institutions limited, rules?heavy access to its payment rails, not full bank status. For the industry, the key questions now are which charters will qualify, how strict the final safeguards will be, and whether this skinny access eventually evolves into broader, more routine connectivity between crypto platforms and the U.S. central banks core payment infrastructure.