Federal Reserve’s Proposal Aims to Alleviate Crypto Debanking Challenges
The Federal Reserve is advancing a proposal that could reshape the financial landscape for cryptocurrency platforms. By granting fintechs and crypto entities direct access to U.S. payment rails, the initiative seeks to reduce reliance on traditional banks—addressing longstanding debanking issues.
Governor Christopher Waller outlined the plan at the Fed’s Payments Innovation conference. 'Skinny' master accounts WOULD provide limited access to payment infrastructure, excluding interest-bearing or emergency borrowing features. This strategic move aims to foster innovation while maintaining systemic safeguards.
The proposal signals growing institutional recognition of crypto's role in financial infrastructure. For digital asset markets, direct Fed access could streamline settlements and enhance liquidity—potentially accelerating mainstream adoption.
