This past week saw notable progress in the integration of digital assets.
By Nikhilesh De May 24, 2026, 6:30 p.m. 4 min readMake preferred on U.S. Federal Reserve headquarters in Washington (Jesse Hamilton/CoinDesk)The Federal Reserve has released an updated version of its proposal for a "skinny" master account, revising the initial proposal introduced last December. Coinciding with this, President Donald Trump signed an executive order aimed at enhancing the connection between digital assets and existing payment systems.
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Skinny charterThe narrative
On Tuesday, U.S. President Donald Trump issued two executive orders. One of these orders mandates that the government update regulations to better incorporate cryptocurrency into payment frameworks, while the other focuses on reinforcing Bank Secrecy Act regulations. The following day, the Federal Reserve Board released its revised proposal for a skinny master account, detailing its strategy for enabling crypto firms to access its payment systems.
Why it matters
The integration of the crypto sector with the federal payment system is a significant aim for the industry. The proposals made last week could potentially facilitate that integration.
Breaking it down
The Federal Reserve's Wednesday proposal refines its request for information regarding skinny master accounts, first introduced in December 2025. It outlines how the central bank plans to provide access to its payment systems for fintech and crypto companies without necessitating them to be fully chartered banks under the Office of the Comptroller of the Currency.
The fintech-focused executive order instructs federal regulators to review current policies to assess their impact on financial institutions and to identify any regulations that may hinder fintech firms from collaborating with regulated entities.
Additionally, the order prompts the Fed to evaluate its handling of uninsured depository institutions and their access to payment accounts.
This review will include an assessment of whether Federal Reserve member banks can independently provide payment accounts to certain entities.
However, the Fed may require Congressional action to clarify which types of entities can qualify for such accounts.
The BSA-focused executive order requires the U.S. Treasury and regulators to provide guidance to banks and other organizations.
Trump's order stated, "My Administration will not tolerate national security and public safety risks posed by illicit cross-border financial activities, nor will it allow risks to our financial system stemming from the extension of credit or financial services to inadmissible and removable alien populations."
This could encompass advisories addressing "payroll tax evasion," shell companies, and "the strategic use of unregistered money services businesses, third-party payment processors, or peer-to-peer platforms to facilitate 'off-the-books' wage payments intended to evade Bank Secrecy Act reporting requirements or tax obligations," among other entities.
While the executive order did not specifically mention cryptocurrency or decentralized finance trading platforms, they could potentially be included in any forthcoming guidance, according to Nicholas Anthony, a research fellow at the Cato Institute.
The next point of interest is what the guidance and advisories will contain.
"Currently, it’s in the Treasury's hands, which has the authority to apply it broadly to any entities it deems fit, due to its powers under the Bank Secrecy Act," he stated.
Senate developments
Recently, the Senate Banking Committee advanced the Clarity Act.
It was anticipated that the Senate would address this bill within the next month, resolving ethical concerns and other outstanding issues before voting on its passage to the House of Representatives. However, this timeline faced a setback when the Senate adjourned for the Memorial Day recess without voting on a reconciliation bill intended to fund the Department of Homeland Security, among other priorities.
The challenge lies in the limited time available for Senate operations. There are only 19 working days in June, followed by 15 in July, with five more in August before the recess for the remainder of the summer.
During this period, the Senate must address reconciliation, renew the Foreign Intelligence Surveillance Act (which is set to expire in mid-June), and possibly tackle a housing bill.
Complicating matters, the Senate left town due to President Trump's request for $1 billion for his proposed East Wing ballroom and an additional $1.8 billion for a controversial weaponization fund, which has been criticized by members of both parties as a "slush fund." Although the ballroom funding was removed from the bill, the $1.8 billion request proved too contentious to negotiate this week.
Negotiations over these issues—barring any backdoor deals during the recess—could prolong the process, further reducing the time available for the Clarity Act. Additionally, the ethics provision in the market structure bill remains unresolved, and the White House has not indicated its position on what may be acceptable, adding another layer of complexity to the negotiations.
This weekThis week
- The House and Senate are on recess this week.
If you have any thoughts or questions about topics for next week or any feedback, feel free to reach out via email at nik@coindesk.com or connect with me on Bluesky @nikhileshde.bsky.social.
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See you next week!
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What to know:
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