Fed Proposes Limited Accounts for Crypto Companies
The U.S. Federal Reserve has taken another step toward introducing a new type of special payment account designed for cryptocurrency companies and other non-bank financial institutions. These limited accounts are a simplified version of the master accounts provided by the central bank to full-service banks, allowing firms with diverse business models to process payments faster and at a lower cost. This is reported by Coindesk.com reports .
According to the Fed's statement, holders of such accounts will not have access to intraday credit or the discount window, and no interest will be paid on balances held in Reserve Bank accounts. The system will be equipped with automated controls to prevent overdrafts. This initiative is a key goal in expanding access to Fed payment systems for the crypto sector.
This new proposal is based on a preliminary draft announced in December and will now be subject to a 60-day public comment period. The Fed plans to increase maximum balance limits on these accounts based on the institution's projected payment activity. At the same time, the central bank has asked regional banks to pause processing certain applications until new rules are finalized.
Notably, in March, Kraken became the first to receive a limited master account issued by the Federal Reserve Bank of Kansas City. Additionally, a new executive order signed by President Donald Trump has tasked the Fed with reviewing the procedures for non-bank firms and uninsured depository institutions to access payment systems.
