We explain what the new proposal entails and how it will impact the American crypto market.
The US Federal Reserve has published an updated draft rule that could significantly ease crypto and fintech companies’ access to the Fed’s payment infrastructure. The initiative follows President Donald Trump’s executive order signed on May 19.
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What Is the Fed Proposing?
The regulator proposes introducing a special “skinny master account” format—a simplified version of master accounts. Such accounts would allow non-bank companies, including crypto firms, to conduct settlements directly through the Federal Reserve system without obtaining a full bank license.
Key restrictions of the new format include:
- No access to intraday credit or the discount window
- No interest accrual on balances
- Maximum balance limits based on transaction volume
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The Fed emphasizes that the new mechanism does not expand the legal criteria for access but would reduce dependence on intermediary banks and speed up payments. Companies would have to comply with strict anti-money laundering and risk management requirements.
The Fed has opened a 60-day public comment period on the proposal.
Trump’s Executive Order and Market Reaction
On May 19, the president signed an executive order requiring the Fed to assess within 120 days all possibilities and legal barriers to expanding fintech and crypto companies’ access to payment services. Federal regulators are also tasked with identifying within 90 days any rules that hinder innovation and proposing changes.
The initiative is particularly important for companies that have already gained limited access. In March 2026, the Kraken exchange became the first crypto platform to receive a “limited master account” through the Federal Reserve Bank of Kansas City.
Tax Relief
Meanwhile, the PARITY Act is advancing in Congress. The bill would require the Treasury and IRS to study the possibility of introducing a de minimis exemption for small crypto transactions.
The authors note that current rules create excessive reporting burdens. Kraken, for example, sent the IRS 56 million tax forms, a third of which were for amounts under $1.
Learn more: How Federal Reserve Policy in 2026 Is Shaping Bitcoin’s Next Move
