Fed Governor Waller stated that the "streamlined master account" could be operational before the end of 2026, while the Clarity bill regarding the legal framework for digital assets remains stalled in the U.S. Congress.
The U.S. Federal Reserve (Fed) is expected to implement the proposal for a "streamlined master account" before the end of this year, despite the instability surrounding the digital asset market and the stagnation of efforts to build a comprehensive legal framework for the cryptocurrency industry in the U.S.
Speaking at an event hosted by the Global Interdependence Center on Monday, Fed Governor Christopher Waller said a streamlined version of the master account could be operational before the end of 2026. In the current system, traditional master accounts allow financial institutions to connect directly to the Fed's payment system and access the U.S. money supply.
However, the 'streamlined' version will impose more restrictions, not allowing interest to be earned on account balances and not granting access to the discount window for emergency borrowing.
The public comment period for this proposal ended last Friday, leaving deep divisions between cryptocurrency companies and the community banking system over whether non-traditional financial institutions should be allowed to connect to the national payment infrastructure. Waller acknowledged that the Fed will have to address each issue individually but affirmed the determination to complete this process this year if all goes smoothly.
The cryptocurrency market and legislative deadlock
The Fed's move comes amid a significant weakening of the digital asset market following the initial excitement of Donald Trump's presidential term. Waller commented that the wave of optimism that arose when Trump took office is gradually fading, as bitcoin and other leading cryptocurrencies have sharply reversed. According to data from The Block, bitcoin once reached a historic high of over 126,000 USD but has now fallen to around 70,000 USD, reflecting widespread pessimism in the market.
While the Fed pursues its own initiatives, efforts to build a comprehensive legal framework for cryptocurrency in Washington D.C. are facing serious hurdles. The market structure bill, commonly referred to as 'Clarity' after the version passed by the House last summer, is currently stalled in the Senate.
This bill aims to establish standards for exchanges and decentralized financial platforms while clearly delineating the regulatory roles between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC).
The Senate Agriculture Committee passed its version of the bill last month but did not receive support from Democrats due to ethical concerns regarding Trump's relationship with the cryptocurrency sector. The Senate Banking Committee then canceled a last-minute vote after Coinbase withdrew its support due to disagreements over stablecoin reward handling.
Waller stated that this stagnation is partly responsible for the turmoil in the cryptocurrency market today, as expectations for legal 'clarity' are no longer optimistic in the near future.