Federal Reserve Plans “Simplified Main Account,” Crypto Regulation Still Unclear

The Federal Reserve plans to launch a “simplified” or “lite” main account this year. This account will offer limited payment system access to certain institutions. However, the overall regulatory framework for cryptocurrencies in the U.S. is still unresolved.

According to statements from Christopher Waller, traditional master accounts provide full access to the Fed’s payment system. The proposed simplified version will come with restrictions, including:
- No interest-bearing balances
- No access to the discount window
- Limited functional scope compared to full master accounts

Key takeaways:
- The Fed is cautiously expanding payment system access
- Progress on crypto market regulation remains slow
- Disagreements continue between banking and crypto sectors
- Crypto market volatility is still seen as structurally high

Waller also noted that the post-election optimism in crypto markets has faded. Volatility remains a constant feature of the asset class.

Does a “lite” Fed account move the system forward, or does it just delay real clarity for crypto regulation?
$PI ‌#CelebratingNewYearOnGateSquare