The U.S. Federal Reserve proposed a new, limited payment account type for fintech firms on May 21, 2026. These accounts provide access to Fed payment infrastructure while managing systemic risks. The proposed accounts exclude access to intraday credit and the Fed’s discount window. Firms will not earn interest on reserves held with the central bank.
The proposal follows a presidential executive order reviewing payment account policies to broaden access. This framework targets non-traditional firms, including many in the crypto sector. The Fed aims to regulate a growing financial segment that currently operates with less oversight than traditional insured banks.
The Fed requested regional banks to pause decisions on non-traditional account requests to ensure a consistent approach during the public comment period. Fed Governor Michael Barr dissented from the move. Barr cited concerns regarding insufficient safeguards against illicit finance.