Yes

>>The Federal Reserve is advancing its plan to give crypto companies direct access to its payment infrastructure.

The Federal Reserve is advancing its plan to give crypto companies direct access to its payment infrastructure.

crypthub

about 5 hours ago

Fed's Payment Access Plan

The Federal Reserve plans to grant direct access to its payment systems for crypto exchanges and fintech firms, bypassing traditional banks. This proposal, suggested by Governor Christopher Waller, involves creating "payment accounts" with restrictions like no interest earnings and limited overnight balances. Banks oppose the move, arguing it risks financial stability by allowing less-regulated entities to access critical infrastructure.

Regulatory Debate and Industry Pushback

Major banks imposed a 12-month waiting period for new applicants, citing concerns over vulnerabilities from unregulated firms. The Financial Services Forum warned that granting access to crypto platforms could expose the system to risks, particularly with dollar-backed tokens. Governor Waller emphasized the proposal as a compromise, aiming to balance innovation with safeguards.

Coinbase Advocacy and Criticisms

Coinbase, the largest U.S. crypto exchange, supports direct Fed access, claiming it would streamline operations and reduce costs. The company criticized the Fed’s restrictions, including overnight balance caps and interest prohibitions, arguing they hinder scalability. Coinbase also requested "omnibus" accounts to improve settlement efficiency, drawing market attention and boosting its stock by 15% after the proposal.

Impact and Future Outlook

The Fed’s plan faces a final decision after a closed comment period, with regulators weighing stability against innovation. Analysts predict cost reductions of 20-30% for crypto services if the framework is adopted. However, challenges remain in addressing banking concerns and ensuring compliance with anti-money laundering measures.