Federal Reserve Proposes Limited Master Accounts for Crypto Firms

The Federal Reserve System proposed the creation of limited master accounts for cryptocurrency firms to provide a restricted version of payment services typically reserved for traditional banks. These accounts would enable crypto companies to clear and settle payments, potentially reducing operational costs, but they would not include access to the discount window, intraday credit, or interest earnings on balances. To mitigate risk and prevent overdrafts, the Fed would implement automated controls on the accounts.

The proposal comes after extensive lobbying from the cryptocurrency industry, including firms such as Coinbase Global. Some industry members have criticized the proposal, characterizing the restricted services as skinny accounts. The move follows a separate instance in March 2026, where the Federal Reserve Bank of Kansas City granted a limited master account to the privately held firm Kraken, though that action occurred outside of federal jurisdiction.

The Federal Reserve has opened a public comment period to gather feedback on the proposed account structure and its requirements for eligibility.