Federal Reserve Seeks Public Feedback on Limited-Clearing Payment Accounts
The Federal Reserve is inviting comments on capped, non-interest payment accounts for eligible institutions, including crypto and fintech firms, aimed at fostering innovation while safeguarding payment system integrity.
The Federal Reserve has opened a 45-day public comment period on a proposal for special purpose payment accounts that provide direct access to its payment system for eligible institutions, including cryptocurrency and fintech firms. These accounts would be capped, offer no interest or overdraft facilities, and feature a streamlined approval process designed to balance innovation with security. Governor Christopher Waller stated the initiative aligns with previous 'skinny' master account concepts, granting limited clearing and settlement rights without compromising financial stability.
- Payment account: A proposed Federal Reserve-managed account enabling limited payment clearing for eligible institutions, without interest, Fed credit access, or exceeding balance limits.
- Master account: A standard Federal Reserve account providing full payment clearing, interest accrual, and access to credit facilities for eligible institutions.
- Fed payment rails: Infrastructure managed by the Federal Reserve that facilitates the clearing, settlement, and transfer of funds between financial institutions.