Fed Plans to Launch "Skinny Master Account" This Year, Overall Crypto Regulatory Framework Remains Unclear

Odaily News According to Federal Reserve Governor Christopher Waller, the Fed plans to launch the so-called "skinny master account" by the end of this year. Against the backdrop of slow progress on broader crypto market regulatory rules, this will provide limited access to the payment system for certain institutions.

Waller pointed out at an event hosted by the Global Interdependence Center that traditional master accounts allow financial institutions direct access to the Federal Reserve's payment system, while the "skinny" version will have several restrictions, including non-interest-bearing account balances and inability to obtain financing through the discount window. The public comment period for the related proposal has ended. Currently, there remains a divergence between the banking industry and the crypto industry over whether non-traditional financial institutions should have access to the U.S. payment system.

He also mentioned that as crypto market prices correct, the market "excitement" brought about by Trump taking office last year is fading. Waller stated that crypto assets still exhibit high volatility, and price fluctuations are inherently characteristic of this market.

At the legislative level in Washington, the overall regulatory framework for the crypto industry still faces resistance, with progress on several related bills remaining slow.