Fed Moves Forward on Direct Payment Access for Crypto Firms
The Federal Reserve is pressing ahead with a framework to let crypto firms and fintechs open tailored "payment accounts" on its rails, a proposal advanced in late 2025 at the urging of Governor Christopher Waller. Federal officials say the accounts are designed to integrate nonbank firms into core payment operations while addressing operational and compliance differences between institutions. The proposal has drawn notable pushback from commercial banks concerned about competition and systemic risk. If implemented, direct access could speed settlement, lower costs for digital-asset firms and intensify competition in payments and custody services. At the same time, the plan raises questions about risk controls, liquidity management and how regulators will supervise nonbank participants on a system traditionally dominated by banks. Market participants will watch how the Fed balances innovation, financial stability and regulatory oversight as it moves toward potential implementation.