Fed proposes limited master accounts for crypto

The U.S. Federal Reserve has advanced a proposal for limited master accounts, a move long sought by cryptocurrency firms. This revised plan allows firms with diverse business models to access payment services for faster, cheaper transactions, though without the full benefits afforded to traditional banks. These accounts will not offer intraday credit or access to the discount window, and balances will not earn interest. The Fed is opening a 60-day comment period on the updated proposal, which adjusts closing balance limits based on expected payment activity. This initiative aims to standardize access to the Fed's payment rails, a key objective for the crypto sector.