Fed solicits feedback on account types appealing to cryptocurrency companies.

Proposed Payment Accounts: The US Federal Reserve is seeking public input on a new "payment account" system aimed at fintechs and crypto firms, which would allow them access to the central bank without traditional approvals, promoting innovation while ensuring payment system safety.

Concerns and Risks: Some Fed officials, like Governor Michael Barr, express concerns about potential risks related to money laundering and terrorist financing, particularly for institutions not directly supervised by the Fed.

Impact on Crypto Firms: The inclusion of crypto firms in the Fed's banking system could signify a major shift for the industry, which previously faced restrictions under the Biden administration's "Operation Chokepoint 2.0."

Account Limitations: Unlike traditional master accounts, the proposed payment accounts would have limitations such as no interest earnings, restricted access to Fed credit, and balance caps, with the feature expected to be operational by late 2026.