U.S. President Donald Trump signed an executive order Tuesday directing the Federal Reserve and other regulators to review policies that may be hindering financial innovation. The order specifically asks the Fed to assess its rules for granting access to payment accounts and services, and to explore expanding that access to fintech firms and other non-bank entities.
Access to so-called "master accounts" - which function like bank accounts for banks, allowing direct movement of funds through the Fed's payment system - has become a key issue. Several fintechs and crypto firms have applied or signaled plans to seek such access.
Crypto exchange Kraken secured a master account in March, enabling it to use the Fedwire wholesale payment system and hold limited overnight balances. Ripple, Anchorage Digital, and money transfer firm Wise are among other companies also pursuing master accounts.
The Fed has already indicated a willingness to open its payment rails further. In December, it requested feedback on a new restricted payment account model, similar to the one granted to Kraken.