The US Federal Reserve has proposed a framework for limited payment accounts aimed at fintech and cryptocurrency firms, calling for a temporary pause on Tier 3 applications. This initiative, aimed at allowing eligible nonbank financial institutions narrower access to the Fed's payment systems, will be open for public comment following its announcement.
The Fed's suggestion includes the concept of “skinny master accounts,” which would not provide the same protections as traditional banking access. As part of this rulemaking process, regional Reserve Banks have been advised to hold off on decisions regarding Tier 3 account requests until the proposal is finalized, which is anticipated by December 31, 2026.
This regulatory move comes in the wake of President Donald Trump's executive order aimed at enhancing fintech and digital asset integration into the financial landscape. However, the Fed's cautious approach continues to limit direct access for cryptocurrency exchanges, despite increasing political support for improved integration.
As of February 28, 2026, several Tier 3 institutions, including Kraken Financial, have pending requests for master accounts. Kraken was subsequently granted a limited-purpose master account by the Federal Reserve Bank of Kansas City in March 2026 under the Tier 3 classification.