Crypto companies poised to gain access to "master accounts"? Trump orders Fed to comprehensively review current policy

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US President Donald Trump has once again delivered a "major bullish signal" to the crypto industry, formally ordering the Federal Reserve (Fed) to conduct a comprehensive review of current policies and assess whether cryptocurrency and fintech firms should be allowed to hold "master accounts," granting them access to the Fed's payment systems. On Tuesday, Trump signed an executive order titled "Incorporating Fintech Innovation into the Regulatory Framework," urging the federal government to remove "overly burdensome" regulatory policies. Trump Demands Clarification: How Much Authority Do Fed Regional Banks Actually Have? Under the current Federal Reserve Act, regional Federal Reserve Banks have the authority to approve or deny applications for access to the Fed's payment systems. In the past, this "VIP ticket" has typically only been issued to chartered traditional depository institutions (such as commercial banks), forcing many cryptocurrency operators to actively pursue federal charters just to squeeze through this narrow gate. The executive order states: "To foster financial innovation, the federal government must update regulations to keep pace with the times, enabling digital assets and innovative technologies to be integrated into traditional financial services and payment systems." Notably, Trump is not only requiring the Fed to conduct a "comprehensive health check" of the current payment account access system, but also demanding it explore the feasibility of extending such privileges to the crypto and fintech sectors. In addition, he is asking the Fed to clarify whether its 12 Federal Reserve Banks possess the independent legal authority to approve or deny operators' applications for payment accounts. In the US financial system, such privileges are typically referred to as "Master Accounts." Once crypto operators obtain this qualification, they can bypass intermediaries such as traditional commercial banks and connect directly with America's most core settlement system, significantly reducing transaction fee friction and time costs. To ensure efficiency, Trump has ordered the Fed to submit its assessment report to the White House within 120 days. Kraken Gains Early Access to the Fed Payment System In fact, whether or not to open "Master Accounts" to cryptocurrency operators has already sparked fierce debate within US financial circles, and has become a battleground between traditional Wall Street and the emerging tech sector. The flames were fully ignited in March of this year. At that time, the Kansas City Federal Reserve Bank approved the application of Payward, the parent company of well-known cryptocurrency exchange Kraken, and granted it a "skinny master account." This breakthrough enabled Kraken to directly use the Fed's payment systems for large-value US dollar settlements, significantly improving institutional deposit and withdrawal efficiency. However, such accounts still come with restrictions, such as not being eligible for reserve deposit interest and other benefits. Even so, Kraken co-CEO Arjun Sethi still regarded this as a major milestone, stating that it was "a historic convergence of cryptocurrency infrastructure and national-level financial lifelines." However, this decision sparked strong dissatisfaction from traditional financial giants. The Bank Policy Institute (BPI), which represents major US banks, stepped forward to harshly criticize the move, expressing "deep concern" over the Fed's hasty approval before establishing an overall policy framework for such "limited purpose" or "skinny" master accounts. To ease the controversy, the Fed issued a proposal in December last year outlining a regulatory prototype for "Skinny Master Accounts." While such accounts can use the Fed's payment systems, they cannot enjoy the full range of services available to traditional banks—they pay no interest, do not permit overdrafts, cannot access the Fed's emergency lending facilities, and the account size will also be restricted. Last month, California Democratic Representative Sam Liccardo and Republican Representative Young Kim introduced the "Payment Access and Consumer Efficiency Act (PACE)," aimed at allowing specific operators to also use the Fed's payment services. The bill is still in its early stages but has already received support from cryptocurrency industry groups.

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