Pause third-level applications until 2026, existing players are happy, new entrants are crying.

CryptoWorld News reports that the U.S. Federal Reserve has proposed establishing a new category of limited payment accounts, which would allow eligible fintech firms and crypto banks to access parts of the central bank’s payment infrastructure, but would not grant all the privileges of traditional banks. According to a Federal Reserve notice released on Wednesday, the proposal would create limited-purpose “payment accounts” for certain non-bank financial institutions, enabling access to clearing and settlement services, while excluding tools such as interest, intraday credit, and the Federal Reserve’s discount window. The proposal would also require regional Federal Reserve Banks to temporarily pause decisions on pending Tier 3 master account applications, with the pause expected to last until December 31, 2026. Federal Reserve officials said the pause will provide time to collect public feedback and apply the framework consistently across Reserve Banks. The proposal is also being issued as a request for comments and a proposed rule.