Fed pushes to introduce 'skinny master accounts' within this year, creating a workaround as crypto legislation stalls

The U.S. Federal Reserve (Fed) said it is pushing to introduce so-called “skinny master accounts,” which would grant limited access to payment infrastructure, as legislation to establish a market structure for digital assets remains deadlocked.

According to The Block on the 9th (local time), Fed Governor Christopher Waller said at an event hosted by the Global Interdependence Center, “If we can reasonably synthesize the relevant discussions, our goal is to introduce skinny master accounts by year-end.”

A master account is the key channel that allows financial institutions to access the Fed’s payment systems directly. However, the skinny master account under review would sharply curtail access compared with existing accounts—such as by prohibiting interest payments on reserves and limiting borrowing through the discount window. It is effectively interpreted as a plan to grant only limited payments access to nonbank financial institutions and fintech and digital-asset firms.

The remarks came shortly after the public comment period on the proposal concluded. During the submission process, a clear divide emerged between the digital-asset industry and regional banks. Digital-asset firms supported the move, citing the need to spur innovation and improve competitive conditions, while banks urged caution, warning of potential supervisory gaps and risks to financial stability. Waller acknowledged that “there are still areas where disagreements need to be reconciled,” but made clear his intent to proceed within the year.

The Fed’s move comes as debate in Washington over the “Clarity” bill—intended to regulate the broader digital-asset market—has stalled. The bill would set regulatory standards for crypto exchanges and decentralized finance (DeFi) and delineate oversight authority between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC). In the Senate, however, progress has halted amid partisan اختلافs, issues related to stablecoin rewards, and ethical controversies.

Waller said, “Discussion of the Clarity bill in Congress has effectively fallen into deadlock. The market expected it to clear a path, but there doesn’t appear to be progress for the time being.” He also added, regarding the recent price pullback in major digital assets such as bitcoin, that “the excessive optimism that formed early in the current administration is gradually fading.”

Bitcoin, in fact, has retreated to around $70,000 after hitting an all-time high above $126,000 last year. “The digital-asset market, like other high-risk assets, is an arena where gains and losses repeat,” Waller said, assessing that delays in institutional and regulatory frameworks are increasing market uncertainty.