The US Federal Reserve proposed a limited “skinny” payment account framework for fintech and crypto firms and called for a temporary pause on Tier 3 applications.
The US Federal Reserve proposed the creation of limited payment accounts that could provide legally eligible fintech and crypto-linked banks with narrower access to its payment rails without the protections available to traditional banks.
The proposal was released on Wednesday through a request for comment and notice of proposed rulemaking from the Federal Reserve Board, referring to “skinny master accounts” for nonbank financial institutions.
The US Federal Reserve also encouraged regional Reserve Banks to pause decisions on Tier 3 account-access requests while the rulemaking process is completed, a step that staff expect to conclude by Dec. 31, 2026.
“The temporary pause will allow the Federal Reserve to solicit and consider public input on payment accounts and to promote consistent implementation,” the announcement said.
The move highlights continuing regulatory tension over crypto access to US payment systems after Donald Trump issued an executive order calling for broader fintech and digital asset integration, while a more cautious stance continues to be maintained by the US Federal Reserve.
Tier 3 Suspension Likely to End by Dec. 31
The US Federal Reserve expects its temporary pause on Tier 3 master account applications to end on or before Dec. 31, according to a Board memo.
The memo also included a list of “pending account requests” from Tier 3 institutions as of Feb. 28, 2026. Companies such as Kraken Financial, the banking division of cryptocurrency exchange Kraken, were included on the list.
Kraken was later granted a limited-purpose master account by the Federal Reserve Bank of Kansas City in early March 2026. The access was approved specifically under a Tier 3 classification.
Trump Order Renews Debate Over Crypto Access to Federal Reserve Services
Access to Fed master accounts has long been pursued by the crypto industry as a way to connect more directly to the US payment system.
Direct access for crypto exchanges is not provided under the latest proposal, even as broader political support continues to grow for expanding fintech and digital asset access to the financial system.
Even though Donald Trump’s executive order signaled support for broader fintech and digital asset integration, direct access to master accounts would still remain unavailable to crypto exchanges. According to Eleanor Terrett, firms would instead be required to operate through an affiliate that qualifies as an eligible depository institution under the Federal Reserve Act.
The concept of “skinny” payment accounts was first introduced in October by Christopher Waller and was later expanded through policy discussions held in early 2026.
Unlike master accounts, the proposed payment accounts would be restricted to clearing and settlement functions only. Interest would not be earned through them, and access to central banking tools such as the discount window or intraday credit would not be provided.
