Fed asks for feedback on payment accounts that could appeal to crypto firms

The Fed’s new request for public input is likely to draw attention from fintech and crypto companies that build products around payments. For these firms, direct access to the central bank’s payment rails could mean less reliance on intermediary banks, and fewer operational bottlenecks when moving funds.

At the same time, the Fed is drawing clear lines around what this account would not do. The concept does not include interest payments, does not open the door to Fed lending, and would likely come with limits on balances. In other words, it is aimed at settlement and clearing, not a full suite of banking privileges.

Governor Christopher Waller, who has spoken about the idea, frames the proposal as a response to how quickly the payments market is changing. New customer-facing models keep appearing, and some nonbank businesses want to connect closer to the base layer of the system. The Fed’s argument is that a narrower set of functions could lower risk for the broader financial system. That is also why, in theory, applications for a payment account could be evaluated faster than requests for a full master account.

Not everyone at the Fed is equally comfortable with that direction. Vice Chair for Supervision Michael Barr has warned that any framework would need strong guardrails for anti-money laundering and counter-terrorist financing. His concern is straightforward. Some applicants could sit outside the Fed’s direct supervisory reach, and that can make oversight and enforcement harder.

If the concept ultimately moves forward, the market expects interest from large, payments-oriented crypto companies. Names that frequently come up in public discussions include Circle, Coinbase, Kraken, and Block. For the crypto sector, even a limited path into Fed-operated payment infrastructure looks like a notable shift in tone compared with last year, when many firms said they were being pushed out of the banking system.

The timing matters as well. The debate over payment accounts is unfolding alongside a separate regulatory reset. On December 17, 2025, the Fed withdrew its 2023 guidance that had constrained certain crypto-related activities for banks under its supervision, including uninsured institutions. In place of that broad restriction, the Fed moved toward a process where banks can seek a “non-objection” for new lines of business, including digital asset custody, as long as they can demonstrate appropriate risk management, compliance, and AML controls.

The comment window for the payment account proposal is expected to close 45 days after the notice is published in the Federal Register. Waller has suggested that, if the concept is approved and turned into formal rules, the tool could be up and running in the fourth quarter of 2026.