The Federal Reserve plans to launch a "simplified main account" within the year, but the overall regulatory framework for cryptocurrencies remains unclear.

Odaily Planet Daily News: Federal Reserve Board Governor Christopher Waller stated that the Federal Reserve plans to introduce a so-called “skinny master account” by the end of this year, providing limited access to the payment system for certain institutions amid slow progress in broader cryptocurrency market regulation.

Waller pointed out at an event hosted by the Global Interdependence Center that traditional master accounts allow financial institutions to directly access the Federal Reserve’s payment system, while the “skinny” version will have several restrictions, including non-interest-bearing account balances and inability to finance through the discount window. Public consultation on the related plan has ended, and there are still disagreements between the banking industry and the crypto industry regarding whether non-traditional financial institutions should access the U.S. payment system.

He also mentioned that as crypto market prices have retreated, the market “excitement” brought about by Trump’s inauguration last year is fading. Waller stated that the volatility of crypto assets remains high, and price fluctuations are inherent features of this market.

On the legislative front in Washington, the overall regulatory framework for the crypto industry still faces resistance, and progress on several related bills remains slow.