Fed seeks input on expanding master account access following Trump's executive order

The U.S. Federal Reserve has officially requested public comment on a proposal to establish a new type of payment account that may allow certain crypto firms to access the Fed's clearing and settlement systems.

The central bank wrote in its Wednesday statement that it has received an increasing number of requests for access to the Fed's payment services from institutions that are not federally insured. 

"The proposed payment account would be tailored to support innovation by serving the clearing and settlement needs of certain eligible institutions while also mitigating material risks to the Reserve Banks and payment system," the statement said. 

Under the Federal Reserve Act, Federal Reserve banks currently have the authority to approve or deny applications for access to the Fed accounts. Qualified applicants are generally licensed depository institutions.

The proposed account is "substantially similar" to the proposal introduced in December 2025, the Fed said. Under the proposal, account holders would have access to payment services with automated controls, but would not receive intraday credit, access to the discount window, or interest on balances held at the Fed. 

Still, access to the accounts, often referred to as "master accounts," would enable crypto firms to connect directly to core U.S. payment rails without relying on intermediary banks.

The latest proposal has made some changes to the previous version released in December, which includes increasing the maximum closing balance.

Trump's executive order

The Fed's latest request for public input follows President Donald Trump's executive order on Tuesday, which directed the central bank to review and update regulations to "allow integration of digital assets and innovative technology into traditional financial services and payment systems."

Trump specifically instructed the Fed to conduct a comprehensive evaluation of its regulatory framework governing access to Reserve Bank payment accounts and payment services, and to explore options for extending such access to fintech and crypto firms.

As the Fed reviews the proposal to expand master account access for crypto and fintech firms, its Board said it encourages Reserve Banks to temporarily pause decisions on applications from Tier 3 institutions — a category that includes crypto firms — until the Board has completed its policy development process on the proposal.