The U.S. Federal Reserve is considering a new category of “skinny” payment accounts that could give fintech and crypto firms direct access to its payment system, a move many in the industry see as a breakthrough after years of banking restrictions. The proposal, announced by Fed Governor Christopher J. Waller at the Payments Innovation Conference, aims to extend access to smaller companies that currently rely on third-party banks to process transactions.
Waller explained that the new “payment accounts” would offer limited access to the Fed’s payment infrastructure—traditionally available only to major banks through master accounts—while maintaining safeguards against financial and systemic risks. “I believe we can and should do more to support those actively transforming the payment system,” he said, noting that the initiative would help level the playing field for innovative financial technology providers.
The plan comes amid long-standing tensions between crypto firms and U.S. banking regulators. During the Biden administration, several industry executives alleged that crypto companies were systematically denied access to banking services, a situation that became widely known as “Operation Chokepoint 2.0.” The crackdown reportedly affected at least 30 fintech and crypto founders who were refused bank accounts or faced abrupt service terminations.
Caitlin Long, CEO of Custodia Bank—a Wyoming-based institution that was previously denied a Federal Reserve master account—welcomed Waller’s remarks. “THANK YOU, Gov Waller, for realising the terrible mistake the Fed made in blocking payments-only banks from Fed master accounts,” Long wrote on X, adding that the Fed’s previous stance labelling such firms as “unsafe and unsound” had no factual basis. Her reaction reflects a broader optimism within the crypto sector that the new proposal could mark the beginning of normalised relations with U.S. financial authorities.
The debate over access to master accounts intensified after the 2023 collapse of several crypto-friendly banks, including Silvergate and Signature, which had provided critical infrastructure for digital asset transactions. Their downfall triggered renewed allegations that the government was pressuring financial institutions to distance themselves from crypto clients.
Beyond easing banking access, the Federal Reserve is also ramping up its exploration of emerging technologies. Waller confirmed that the Fed is conducting hands-on research into blockchain, tokenisation, smart contracts, and artificial intelligence for payment systems. These efforts, he said, are designed to help the central bank understand the potential benefits of new technologies while assessing whether they can enhance the reliability and efficiency of its own infrastructure.
Although still in its early stages, the concept of “skinny” payment accounts represents a potential turning point for fintech and crypto firms that have long struggled for fair access to the U.S. banking system.
