Overview
- Federal Reserve Governor Christopher Waller said feedback shows fintech and crypto firms seek broader access, while banks press for tighter guardrails, and he aims to finalize the framework by the end of 2026.
- Under the proposal, eligible nonbanks could use FedNow, Fedwire and the National Settlement Service, with no FedACH access, no interest on balances, no discount window access, and an overnight cap set at the lower of $500 million or 10% of assets.
- Fintech groups and firms including Wise and Circle urged ACH access and more flexible caps, arguing current limits would keep them dependent on sponsor banks and could throttle prefunded settlement.
- Bank trade groups such as the ABA and BPI backed excluding ACH and supported caps but called for activity-based limits, direct federal supervision, a 12‑month proven operating history, and public comment on applications.
- Waller described seeking a “middle lane” and said the accounts could reduce the Fed’s legal risk, as legal precedents like the 10th Circuit’s 2025 ruling underscore the central bank’s discretion over account access.