Federal Reserve Proposes Limited Master Accounts for Crypto Firms

The U.S. Federal Reserve has proposed a revised structure for limited payment accounts, known as 'skinny' accounts, which have been sought after by crypto firms. According to CoinDesk, these accounts offer a lighter version of the master-account services provided to fully-fledged banks, allowing firms to clear and settle payments more efficiently. The proposal, which opens for a 60-day comment period, follows an earlier request for information in December. The Fed's new proposal does not include access to intraday credit or interest on balances, and it has adjusted closing balance limits based on expected payment activity. This move comes as the Fed asks regional banks to pause certain applications while finalizing the rule.