Federal Reserve proposes Fed-access accounts for fintech and crypto firms
The Federal Reserve wants to roll out a new type of payment account aimed at fintech and crypto companies.
These accounts would let them send payments directly through the Fed's system, but with some big limits: no perks like instant credit or earning interest.
The idea is to give newer financial players better access while keeping things safe for the whole system.
Regional Fed banks pause nontraditional applications
Traditional banks aren't thrilled, saying these accounts could bring more risks if rules aren't tight enough.
Crypto firms like Kraken are pretty happy about it, though, since it could make moving money easier for them.
Even inside the Fed there is debate; Governor Michael Barr is against it over concerns about possible loopholes for illegal activity.
For now, regional Fed banks have been told to temporarily pause decisions on pending applications from nontraditional firms.