The US Fed took a massive step toward broadening access to its payment system, seeking public comments on a proposed rulemaking for “payment accounts” or “skinny master accounts.” This move will improve crypto firms and fintechs’ payment settlements, with Ripple in the spotlight amid efforts to integrate with traditional finance.
US Fed Seeks Public Comments on Proposed Skinny Master Accounts
The U.S. Federal Reserve (Fed) has issued a request for comment on a proposal to establish “payment accounts,” also known as “skinny master accounts,” according to a press release.
These accounts enable legally eligible crypto firms and financial institutions gain access to the US Fed’s payments system for clearing and settlement purposes. Notably, crypto firms such as Ripple, Anchorage Digital, Circle, and Custodia Bank have applied for master accounts, with Kraken receiving approval earlier this year.
This marks the next formal step in Governor Christopher Waller’s payment account implementation process. It follows the public comment period on the proposal, which closed in February.
The Fed added that the proposed payment account is tailored to support innovation while mitigating material risks to the Reserve Banks and the payment system. The skinny master account holders would not have access to intraday credit, discount window, and interest on balances facilities.
As CoinGape reported, President Trump signed an executive order directing the US Fed to review crypto and fintech firms’ access to payment accounts and services. He also ordered regulators to identify and remove barriers to entry within three months.
US Fed Limits Skinny Master Accounts for Crypto Firms
While the proposal included changes such as having closing balance limits based on an institution’s expected payment activity and increasing the maximum closing balance, the US Fed is also limiting access.
The Fed Board is urging reserve banks to temporarily pause decisions on new “Tier 3” master account access requests until December 2026. Notably, most crypto firms fall under Tier 3.
The board claims it needs to complete its policy development process regarding skinny master account proposal. “The temporary pause will allow the Federal Reserve to solicit and consider public input on payment accounts and to promote consistent implementation,” it added.
The limitations come as Senator Elizabeth Warren submitted more than 40 amendments to the CLARITY Act, with one to block the Fed from issuing master accounts to crypto companies, including Ripple. She also questioned the OCC’s bank charter approvals for crypto firms such as Ripple and Coinbase.
XRP Price amid Ripple’s Fed Master Account Access Hopes
XRP bulls are strongly holding the price above key levels. A potential Fed master account access for Ripple is also among the major catalysts keeping the community bullish on the token.
Ripple stands out among firms poised to gain from a payment account. Its RLUSD stablecoin and cross-border payments solutions could see enhanced efficiency through direct Fed payment system access.
The price jumped more than 2% to $1.38 after CoinGape reported that XRP options traders are eyeing a recovery despite a slowdown in whale activity. However, trading volume has decreased by 15% over the last 24 hours.
The derivatives market is showing mixed sentiment after the FOMC minutes release, as per CoinGlass data. The total XRP futures open interest dropped 1.84% to $2.89 billion in past hour. Notably, XRP futures OI on CME and Binance jumped by more than 0.40% and 3%, respectively.
