The post Fed Considering ‘Skinny’ Master Accounts for Crypto Banks on ‘Streamlined Timeline’ appeared on BitcoinEthereumNews.com. In brief Federal Reserve Governor Christopher Waller proposed offering “skinny” master accounts to innovation-focused banks, granting them qualified access to Fed payment systems. These accounts would speed up access to the Fed’s services for crypto banks, but exclude benefits like earning interest or overdraft privileges. They could also include balance caps to manage risk. The move could open doors for crypto institutions nationwide, though some—like Custodia Bank’s Caitlin Long—warn that eligibility rules might still leave key players out. A key decision leader at the Federal Reserve has proposed a new path to registration with the central bank Tuesday—one that could, for the first time, unlock coveted privileges for crypto-focused financial institutions. Federal Reserve staff is currently exploring the idea of issuing “skinny” master accounts on a streamlined timeline to institutions that haven’t yet managed to secure full-fledged ones, Fed Governor Christopher Waller announced Tuesday at a conference in Washington.  Master accounts, possessed by all federally chartered banks, allow for direct payments and access to the Fed. For years, crypto-focused institutions have tried and failed to secure them— and thus gain the coveted ability to function as national banks.  That state of affairs could now change imminently. Waller’s plan would allow U.S. institutions focused on “payments innovation”—aka, crypto and other emerging financial technologies—to gain their own access to the Fed’s services, as opposed to depending on third-party, master account-holding banks. Such “skinny” master accounts could provide crypto banks access to Fed payment rails on a “streamlined timeline,” Waller said. They would not provide certain benefits, though, including payments of interest on account balances or overdraft privileges. They might also impose caps on balances, in a bid to control for “various risks to the Federal Reserve and the payment system.” Waller said updates on the potential implementation of his “skinny” master… The post Fed Considering ‘Skinny’ Master Accounts for Crypto Banks on ‘Streamlined Timeline’ appeared on BitcoinEthereumNews.com. In brief Federal Reserve Governor Christopher Waller proposed offering “skinny” master accounts to innovation-focused banks, granting them qualified access to Fed payment systems. These accounts would speed up access to the Fed’s services for crypto banks, but exclude benefits like earning interest or overdraft privileges. They could also include balance caps to manage risk. The move could open doors for crypto institutions nationwide, though some—like Custodia Bank’s Caitlin Long—warn that eligibility rules might still leave key players out. A key decision leader at the Federal Reserve has proposed a new path to registration with the central bank Tuesday—one that could, for the first time, unlock coveted privileges for crypto-focused financial institutions. Federal Reserve staff is currently exploring the idea of issuing “skinny” master accounts on a streamlined timeline to institutions that haven’t yet managed to secure full-fledged ones, Fed Governor Christopher Waller announced Tuesday at a conference in Washington.  Master accounts, possessed by all federally chartered banks, allow for direct payments and access to the Fed. For years, crypto-focused institutions have tried and failed to secure them— and thus gain the coveted ability to function as national banks.  That state of affairs could now change imminently. Waller’s plan would allow U.S. institutions focused on “payments innovation”—aka, crypto and other emerging financial technologies—to gain their own access to the Fed’s services, as opposed to depending on third-party, master account-holding banks. Such “skinny” master accounts could provide crypto banks access to Fed payment rails on a “streamlined timeline,” Waller said. They would not provide certain benefits, though, including payments of interest on account balances or overdraft privileges. They might also impose caps on balances, in a bid to control for “various risks to the Federal Reserve and the payment system.” Waller said updates on the potential implementation of his “skinny” master…