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The Federal Reserve plans to introduce restricted ‘skinny master accounts’ for select crypto and fintech firms before year-end, offering limited payment system access as comprehensive cryptocurrency legislation remains stalled in Congress, Federal Reserve Governor Christopher Waller confirmed.
Federal Reserve Governor Christopher Waller confirmed that the central bank intends to roll out the new category of master accounts before the end of the year, even as lawmakers struggle to advance a long-delayed crypto market structure bill.
The proposal would grant select fintech and crypto-focused firms restricted access to the Fed’s payment infrastructure without extending the full privileges available to regulated banks.
A standard Federal Reserve master account provides institutions with direct access to U.S. payment systems, settlement services, and central bank liquidity tools.
Under the proposed framework, “skinny” master accounts would significantly limit that access.
According to Waller, the accounts would not pay interest on balances and would exclude access to the Federal Reserve’s discount window, a key source of emergency liquidity for banks.
“We’ll have to work through those issues, but if we manage it well, I’d like to complete this by the year’s end if possible,” — Christopher Waller, Governor, Federal Reserve Board.
The initiative comes as Congress remains deadlocked over the crypto market structure bill, leaving regulators to pursue narrower reforms within their existing authority rather than wait for sweeping legislative clarity.
Public comments submitted to the Federal Reserve reveal sharp divisions between stakeholders.
Crypto firms argue that even limited access to payment rails could improve transparency, reduce counterparty risk, and integrate digital-asset businesses more safely into the financial system.
By contrast, community banks and traditional financial institutions warn that granting any form of direct access to non-bank entities could weaken long-standing safeguards and introduce systemic risks.
These competing views illustrate why progress on a crypto market structure bill has been slow.
Without a unified legal framework, regulators are forced to balance innovation and financial stability through incremental measures rather than clear statutory mandates.
Waller acknowledged that broader market sentiment has also shifted. He noted that enthusiasm within the crypto industry initially surged following President Donald Trump’s return to office, but has since cooled amid sustained price declines.
“You get involved, you can earn some money, but you might also lose some,” Waller said. “That’s just how things work in many of these cases.”
While the Federal Reserve presses forward with skinny master accounts, lawmakers continue to debate the scope and timing of the crypto market structure bill, often referred to as the “Clarity” framework.
The legislation seeks to define regulatory responsibilities between the Commodity Futures Trading Commission and the Securities and Exchange Commission, while establishing consistent standards for crypto exchanges and decentralized finance platforms.
The House of Representatives passed its version of the crypto market structure bill last summer, but Senate negotiations have stalled amid disagreements over consumer protections, market oversight, and jurisdictional authority.
Analysts say the delays have prolonged uncertainty for firms operating in the U.S. digital asset market.
The absence of clear legislation has coincided with increased market volatility. Bitcoin, which reached an all-time high above $126,000 last year, has since declined sharply and is currently trading near $70,000, according to CoinMarketCap data.
While macroeconomic pressures have contributed to the downturn, analysts say regulatory uncertainty remains a key overhang.
Passage of a crypto market structure bill could provide clearer rules, reduce fragmentation, and encourage institutional participation.
Until that happens, the Federal Reserve’s skinny master account proposal is likely to remain a focal point in debates over how the U.S. should integrate digital assets into its financial system without undermining stability.
