Federal Reserve Proposes New Payment Account Framework for Crypto Firms
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On May 20 the Federal Reserve proposed a new payment account to give legally eligible crypto and fintech firms direct access to the central bank's payment rails for clearing and settlement, a response to industry demand and milestones like Kraken's approval. The framework blocks overdrafts and excludes Fed credit and reserve interest, limiting liquidity support but still marks a major step toward crypto adoption and integration with U.S. payment infrastructure.
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- Federal Reserve proposed payment accounts for crypto and fintech settlement access.
- New framework blocks overdrafts and excludes Fed credit and reserve interest.
- Kraken approval increased debate over crypto access to U.S. payment infrastructure.
The Federal Reserve has proposed a new framework that could allow certain crypto and fintech firms to gain direct access to the U.S. central bank’s payment infrastructure for clearing and settlement activities.
The proposal, announced in a May 20 statement, introduces a new type of account, a “payment account,” designed for legally eligible institutions that are not federally insured banks. The move follows growing demand from digital asset and financial technology firms seeking direct connectivity to Federal Reserve payment rails instead of relying on intermediary banks.
Under the proposal, eligible firms would be…
Read The Full Article Federal Reserve Proposes New Payment Account Framework for Crypto Firms On Coin Edition.
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