The U.S. Federal Reserve released a revised proposal on May 20, 2026, for a new type of limited payment account, building on its earlier "skinny" account concept. These accounts would provide access to Fed payment and settlement services without full master-account status, aiming to increase payment speed and reduce costs for diverse business models. Notably, account holders would not have access to intraday credit, the discount window, or interest on balances. The Fed made adjustments based on earlier comments, including increasing maximum closing balance limits. This move is significant for the crypto sector, which has sought enhanced access to Fed payment rails. The proposal follows Kraken becoming the first crypto bank to obtain a limited master account in March. The Fed has asked regional banks to pause certain applications while finalizing the rule. Additionally, President Trump issued an executive order requiring the Fed to review its process for granting payment account access to uninsured institutions and non-bank firms.

Key facts

• Fed revised proposal for limited payment accounts, opening 60-day comment period.
• Accounts provide payment services without master-account status, no intraday credit or interest.
• Changes include increased maximum closing balance limits based on expected activity.
• Kraken became first crypto bank with limited master account in March.
• Trump executive order requires Fed to review payment account access for uninsured institutions.

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