Illustration: Shoshana Gordon/Axios
PHILADELPHIA — The SEC is preparing to redraw the lines of crypto oversight as the Fed explores a new charter that would allow nonbanks to tap its payment system.
Why it matters: Washington's two most powerful financial regulators are signaling frameworks that could reshape both market structure and money movement.
Driving the news: Speaking at the Philadelphia Fed's fintech conference, SEC chair Paul Atkins outlined a forthcoming "token taxonomy" to codify when and how digital assets fall under securities law.
- Fed governor Christopher Waller outlined a plan for tiered "payment accounts." Sometimes called "skinny accounts", these are limited-purpose charters being scoped via a forthcoming RFI that could expand Fed access to select nonbanks under new risk tiers.
State of play: The SEC's framework would distinguish tokenized securities, investment tokens, and decentralized network tokens.
- It would also acknowledge that an investment contract can end once managerial control dissipates.
- The SEC's move would clarify the agency's boundary with the CFTC and provide compliant issuers with a defined path to operate legally in the U.S.
- Access would remain limited to legally eligible institutions, without deposit insurance or discount-window privileges.
The other side: Waller's model would allow nonbanks to apply for direct Fed accounts tied to payment activity, subject to heightened capital and supervision standards.
- The Fed's charter concept mirrors other international moves — most notably, the U.K.'s direct RTGS access for nonbank payment service providers.
The big picture: Both initiatives point to a more pragmatic regulatory era that keeps core protections intact while integrating new market participants into the existing system.
- A formal "token taxonomy" could finally align U.S. treatment with the EU's MiCA framework and the U.K.'s FCA model.
- The Fed's proposal, meanwhile, would give supervised nonbanks a defined U.S. channel into settlement systems.
What they're saying: The Bank Policy Institute's Greg Baer argued the "skinny account" model could address objections to nonbank access but risks expanding into full-fledged banking privileges.
- "If you say you don't have to be a bank to get a master account, why not also give deposit insurance and the discount window? Either keep it truly skinny or be honest about the scope," Baer said.
What's next: The SEC is expected to publish its token taxonomy for comment, clarifying whether it will come as guidance or formal rule-making.
- The Fed plans to release its request for information and begin designing capital and oversight tiers for nonbank applicants ahead of a 2026 rollout target.
