Federal Reserve (FED) · Donald Trump · CryptoSlate
The Fed may open direct settlement rails to crypto firms as banks warn of liquidity risk
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The Fed is considering a new kind of payment account that could let crypto firms bypass the banks they have depended on for years.
Key facts
Then, on May 19, President Trump signed an executive order titled “Integrating Financial Technology Innovation Into Regulatory Frameworks,” directing the Fed to submit a comprehensive review
When those relationships collapsed during the failures of Silvergate and Signature Bank in 2023, they revealed how fragile that relationship was, and the industry has been building the case
Fed Governor Christopher Waller said that a streamlined payment account should be operational by late 2026, suggesting the central bank sees this as a near-term deliverable rather than a long-run
The Fed is considering a new kind of payment account that could let crypto firms bypass the banks they have depended on for years
Summary
You never see the most important part of any of your payments. But underneath those interfaces lies a separate, invisible chain of bank reserves, settlement accounts, and Fed infrastructure that determines when your funds clear, who controls that settlement, and which institutions are allowed to participate in it at all. For crypto payments, that underlying system has been off-limits. Two converging developments this week have brought that case to a head.