Fed Advances Crypto Access Amid Banking Sector Pushback
The Federal Reserve is proceeding with plans to grant payment system access to crypto firms through streamlined accounts, as proposed by Governor Christopher Waller in late 2025. These accounts WOULD allow qualified non-bank entities—including digital asset companies—to bypass traditional banking licenses for FedNow and Fedwire access.
Banking groups have mounted fierce opposition, warning of systemic risks. A February 2026 joint letter from the Financial Services Forum, Bank Policy Institute, and Clearing House Association triggered a 12-month moratorium on new applicants. Their Core concern: dollar-backed stablecoin issuers could introduce unchecked vulnerabilities into the financial infrastructure.
The Fed’s compromise imposes strict guardrails—no interest accrual, $500M balance caps, and exclusion from emergency lending facilities. This reflects Waller’s acknowledgment of the "stark divide" between crypto firms seeking regulatory flexibility and banks demanding stringent oversight.
