The Federal Reserve has requested feedback on payment accounts. The plan could give fintech and crypto firms limited direct access to settlement services.
On December 19, 2025, the Fed Board issued a request for information on the new account category. The Fed also opened a public portal for written comments on the proposal. The feedback will be collected for 45 days after Federal Register publication.
Governor Christopher Waller said the concept could support payments innovation while protecting system safety. He urged the Fed to explore slimmer access models in October to accommodate the changing payment technology. Even today, many companies still use intermediary banks to reach Fed payment rails.
Payment firms usually avoid lending and deposit-taking, but seek direct settlement access. This led the Fed to propose a payment account that would be used alongside master account services under the current framework. It said the concept would not change legal eligibility for access to Fed payment services.
The Federal Reserve said payment accounts would not pay interest and would not provide access to Fed credit facilities. Consequently, account holders would not rely on the discount window or other central bank liquidity tools. The Fed also said it would cap balances to reduce spillover risk.
The proposal would cap overnight balances at the lower of $500 million or 10% of total assets. Additionally, the Fed would restrict the account to the holder’s own payments and settlement activity. Firms could not offer correspondent services or settle payments for third parties.
Reserve Banks could add controls through account agreements, formal attestations, and periodic reporting. Moreover, Reserve Banks could tailor limits case by case, based on each firm’s risk profile. The Fed said these tools could speed reviews compared with full master account requests.
Governor Michael Barr said he supports a payment account prototype in principle. However, he opposed the request for information because it lacked detailed financial crime protections. He warned about money laundering and terrorist financing risks at institutions outside Fed supervision.
The proposal arrives after years of dispute over crypto firms seeking direct Fed account access. In 2023, the Fed adopted a policy that raised barriers for some crypto-related approvals. On December 17, 2025, the Fed withdrew that 2023 statement and issued a new policy statement.
Custodia Bank has also continued litigation over a denied Fed account application. The bank has sought broader appellate review after a court decision backed Fed discretion. The Fed said public input will help shape next steps on payment accounts and safeguards.
Also Read: US Federal Reserve Adds Liquidity Through $40B Treasury Bill Purchase Plan