The Federal Reserve plans to implement restrictive "streamlined" payment accounts for fintech and cryptocurrency companies

The Federal Reserve Board (Fed) issued a proposed rulemaking notice and sought public comment on Wednesday, proposing to establish restrictive "skinny master accounts" for fintech and crypto-related banks that meet legal conditions. The proposal aims to provide non-bank financial institutions with narrower access to payment pathways, but these accounts will not have the backing support that traditional banks possess, with functionality limited to clearing and settlement, unable to earn interest, and not able to use central bank tools such as the discount window or intraday credit.