The source says the Federal Reserve could open direct settlement rails to crypto firms, while banks are warning about possible liquidity risk.
The source indicates that the Federal Reserve may allow crypto firms to access direct settlement rails, a change that would potentially give digital asset companies a more direct link to core payment infrastructure. It also says banks are warning that such access could create liquidity risk. Direct settlement access matters because it can reduce dependence on intermediary banks and can reshape how funds move between financial institutions and crypto businesses. Based on the limited source text provided, no details were given on timing, scope, named institutions, or specific policy measures.