The Federal Reserve this week issued a revised proposal for limited-purpose master accounts — the so-called skinny accounts that cryptocurrency firms have been chasing for years. The updated framework, if finalized, would let digital asset companies tap into the central bank's payment infrastructure directly, bypassing the need for a traditional bank intermediary. For an industry that has struggled with de-banking and reliance on a shrinking pool of partner banks, the prospect is a big deal.
What skinny accounts are
Master accounts are the backbone of the U.S. payment system. They let banks hold reserves with the Fed, clear checks, and settle transactions in real time. Crypto firms have argued they need the same access to operate competitively — to move money fast, cut costs, and stop depending on third-party banks that can pull the plug at any moment. The Fed's new proposal revises an earlier draft that critics said was too restrictive.
What changed
The Fed hasn't released every detail yet, but the revised proposal is built around a tiered approach. Not all crypto firms would qualify. The central bank is expected to impose stricter oversight on applicants, including capital requirements and anti-money laundering checks. The goal, according to the Fed's statement, is to balance innovation with financial stability. The agency is now seeking public comment before moving toward a final rule.
The skinny-account push has been stuck in limbo for years. Previous Fed leadership showed little appetite for opening the door to crypto. But pressure from Congress — and from state-chartered crypto banks that sued the Fed for dragging its feet — forced the issue. This revised proposal signals the central bank is trying to find middle ground. It won't please everyone. Some crypto advocates want full, unrestricted master accounts. Traditional banks warn that giving crypto firms direct access could introduce risk.
The comment period will run for the next 60 days. After that, the Fed will weigh the feedback and issue a final rule. The timeline isn't fixed, but sources close to the process expect a decision by the end of the year. Until then, crypto firms will have to keep working through existing banking partners — and keep hoping the skinny account finally gets fattened up.
