Fed Opens Door to “Skinny” Payment Accounts for Crypto Firms After Trump Executive Order

The US Federal Reserve is officially exploring a new framework that could give crypto and fintech firms limited direct access to America’s core payment infrastructure, marking one of the biggest regulatory shifts yet for digital assets in the US. The proposal comes just days after President Donald Trump signed an executive order pushing federal agencies to modernize financial regulations and evaluate broader payment system access for crypto companies.

At the center of the proposal are so-called “skinny” or limited payment accounts. These accounts would allow eligible fintech and crypto-linked institutions to clear and settle payments directly through Federal Reserve infrastructure without granting the full privileges traditional banks receive. Firms would gain access to payment rails like Fedwire, but would not receive interest on reserves, access to the discount window, or intraday credit facilities.

The Fed also announced a temporary pause on pending Tier 3 payment account applications while the rulemaking process unfolds, with the review period expected to continue through the end of 2026. Companies tied to crypto banking initiatives, including Kraken Financial, have already become focal points in the debate after securing limited-purpose Federal Reserve account access earlier this year.

Trump’s executive order adds significant political pressure to the discussion. The order directs the Federal Reserve and other regulators to review rules that may unnecessarily restrict fintech and digital asset firms from accessing payment systems, partnerships, and banking infrastructure. The White House is also pushing for clearer application timelines and more transparent approval standards.

Supporters argue the move could reduce settlement friction, lower payment costs, and modernize financial infrastructure by allowing regulated crypto firms to interact more directly with dollar liquidity systems. Critics, including some banking groups and Fed officials, warn that expanding access to nontraditional financial institutions could introduce liquidity, compliance, and anti-money-laundering risks into the broader banking system.

If adopted, the framework could become a major stepping stone for stablecoin issuers, crypto exchanges, and tokenized asset platforms seeking deeper integration with the traditional financial system. Firms tied to digital payments, stablecoins, and tokenized finance are likely to view the proposal as a signal that crypto infrastructure is gradually moving closer to the core plumbing of the US financial system.