The Federal Reserve opened a 60-day public comment period Tuesday for a payment account proposal letting crypto firms access its clearing systems. This move follows President Trump's executive order last week directing regulators to review crypto access to federal payment rails. The accounts offer a limited pathway but won't grant full master account privileges.
Stripped-Down Account Terms
These payment accounts block overdrafts automatically and provide no intraday credit or interest on balances. Holders must meet existing legal eligibility standards and implement anti-illicit finance controls. Unlike the December 2025 prototype, closing balance limits now scale with expected payment volume and the maximum allowed balance rose slightly. The Fed made clear only institutions already qualifying under current law can apply, and they can't hold both payment and master accounts.
After Trump's Executive Order
The proposal dropped one day after Trump signed the May 19 executive order. That order instructs the Fed to set transparent application procedures and decide on completed requests within 90 days. The central bank immediately paused decisions on Tier 3 access requests—the category covering most crypto firms with novel charters and limited federal oversight. Kraken Financial secured the first Fed master account for a crypto firm this March. Ripple, Anchorage Digital, and Wise have since filed similar applications.
Industry Splits on the Plan
Crypto advocates frame the proposal as addressing debanking concerns, while the Independent Community Bankers of America warned of heightened financial risks. Custodia Bank exhausted its legal options after the Tenth Circuit declined to rehear its case in April. The new payment account may offer Custodia and similar firms a second chance. The Fed explicitly stated it won't expand legal eligibility, leaving the door closed for firms falling outside current criteria.
Comment Period Clock Starts Now
The 60-day window will determine how flexible the final framework becomes for non-bank applicants. Whether the Fed lifts the Tier 3 access pause before finalizing the policy will signal how quickly Ripple and others can expect decisions. All public comments must be submitted by July 19, 2026. The Board has indicated it will review input before setting permanent procedures.
