US President Donald Trump has signed an executive order directing the Federal Reserve to conduct a comprehensive evaluation of its regulatory framework governing access to Reserve Bank payment accounts and payment services, and to explore options for extending such access to fintech and crypto firms. The order, titled Integrating Financial Technology Innovation into Regulatory Frameworks, was signed on 20 May 2026.
The order urges the federal government to remove policies considered overly burdensome and calls for regulations to be updated to allow integration of digital assets and blockchain-based services into traditional financial services and payment systems. It also directs the Fed to clarify whether the 12 Federal Reserve banks have the legal authority to grant or deny access to payment accounts and services independently.
Master accounts and the debate over direct access
At the centre of the policy debate are Federal Reserve master accounts, which provide direct access to core US payment rails used for high-value dollar settlement. Under the Federal Reserve Act, access is generally limited to licensed depository institutions, prompting some crypto firms to pursue federal charter licences as a route to eligibility.
The issue gained prominence in March 2026, when the Kansas City Fed approved a limited-purpose account for Payward, the parent company of crypto exchange Kraken, marking the first such approval for a crypto industry firm. The arrangement gives Kraken access to core payment infrastructure for institutional clients, though without access to interest on reserves. The approval drew criticism from traditional banking groups, including the Bank Policy Institute, which expressed concern that the decision was made before the Fed had finalised a policy framework for so-called skinny master accounts, a restricted form of central bank account providing payment system access without full central bank facilities.
In December 2025, the Fed published a proposal outlining a broader framework for skinny master accounts. The Trump executive order now adds political impetus to that process, directing the Fed to accelerate its evaluation and consider extending access more broadly to non-bank fintech and crypto firms.
Legislative and regulatory context
In April 2026, California representatives Sam Liccardo and Young Kim introduced the bipartisan Payments Access and Consumer Efficiency Act, which aims to allow certain non-bank providers access to Federal Reserve payment services. The bill remains at an early stage but has received support from crypto industry groups.
The executive order reflects a broader shift in the US administration's approach to digital asset regulation. The passage of the GENIUS Act in July 2025, which established a framework for bank interaction with stablecoins, and the active White House engagement in crypto legislation signal a sustained policy effort to integrate digital asset firms more directly into the regulated financial system.
Industry context
Granting non-bank fintech and crypto firms direct access to Fed payment rails would represent a structural change to the US payments landscape, reducing dependence on intermediary banks for clearing and settlement. Proponents argue it would lower costs, increase competition, and enable faster settlement for digital asset businesses. Opponents, primarily traditional banking institutions, contend that it introduces risk into the payments system and creates an uneven regulatory playing field between chartered banks and non-bank entities that would gain equivalent infrastructure access without equivalent prudential oversight.
The Fed's evaluation, ordered within the executive order's framework, will need to address those competing concerns within the existing legal constraints of the Federal Reserve Act.
