Fed's Crypto Payment Access Proposal Draws 30 Comments Amid Market Fear

VADODARA, February 6, 2026 — The U.S. Federal Reserve has received approximately 30 comment letters regarding its proposal to grant cryptocurrency and fintech firms direct access to its payment network. This daily crypto analysis examines the structural implications of this regulatory pivot. The deadline for submissions was February 6, 2026, according to a report from The Block. Market structure suggests this move could create a significant Fair Value Gap in traditional finance integration.

Investigation: The Federal Reserve's Payment Network Proposal

The Federal Reserve's proposal seeks to allow crypto and fintech entities to connect directly to its payment rails. This includes the Fedwire Funds Service and FedNow. According to The Block, the Blockchain Payments Coalition (BPC) submitted one of the 30 letters. The BPC represents major Layer 1 projects like Sui (SUI) and Solana (SOL). Their letter called the proposal an overdue but necessary measure. They argued that access to the central bank's payment system is for implementing the GENIUS stablecoin regulation bill. This bill aims to establish a federal framework for stablecoin issuance and oversight.

Market analysts note the proposal's timing coincides with extreme market fear. The Crypto Fear & Greed Index sits at 9/100. This suggests a potential liquidity grab by institutional players. The Fed's official notice on payment system access outlines technical requirements for participation. You can review the proposal details on the Federal Reserve's official website. The 30-comment volume is relatively low for a policy of this magnitude. This raises questions about industry engagement depth.

Market Context & Historical Precedent

Historically, central bank payment access has been restricted to depository institutions. This proposal marks a structural break from that precedent. In contrast, the 2021-2022 cycle saw regulatory hostility dominate. The current shift suggests a maturation phase for crypto infrastructure. Underlying this trend is the growing institutional demand for seamless settlement. The GENIUS bill, referenced by the BPC, seeks to codify stablecoin standards. This could mirror the 2012 JOBS Act in its impact on capital formation.

Related developments in the regulatory include shifts in political rhetoric affecting Bitcoin's perceived risk profile. , recent exchange liquidity failures highlight the systemic need for robust payment infrastructure. The market's extreme fear sentiment, despite Bitcoin holding above $70,000, indicates a divergence between price and structural confidence.

Technical Architecture & Price Action

Market structure suggests the proposal could act as a bullish Order Block if implemented. Current Bitcoin price action shows resistance at the $72,800 level. This aligns with the 0.786 Fibonacci retracement from the last cycle high. Support is forming around the $68,200 Fibonacci 0.618 level. The Relative Strength Index (RSI) on the daily chart reads 45, indicating neutral momentum. The 50-day moving average provides dynamic support at $69,500.

On-chain data indicates low exchange reserves, suggesting hodler accumulation. This contradicts the extreme fear sentiment. The Volume Profile shows a high-volume node at $70,449, which is the current price. This node may serve as a pivot for the next directional move. The proposal's success could trigger a gamma squeeze in derivatives markets. Market makers would need to hedge exposure to new payment flows.

By The Numbers

Why It Matters

This proposal matters because it directly impacts institutional liquidity cycles. Access to Fed payment rails would reduce settlement latency for crypto firms. Consequently, this could lower counterparty risk in large transactions. Market structure suggests this would attract more traditional capital. The GENIUS bill implementation depends on this access. Stablecoin issuers require real-time settlement to maintain peg integrity.

Real-world evidence shows that payment infrastructure gaps have caused previous failures. The 2022 Terra collapse highlighted settlement inefficiencies. The current proposal aims to mitigate such systemic risks. Retail market structure may benefit from reduced transaction costs. However, the low comment volume of 30 letters suggests cautious industry optimism. This contrasts with the BPC's enthusiastic endorsement.

Expert Commentary

"The Fed's proposal represents a technical inflection point for crypto integration. However, the 30-comment count is analytically sparse for a policy shift of this magnitude. Market participants should scrutinize the final rule's technical specifications, particularly regarding net settlement caps and operational hours. Historical cycles suggest that regulatory clarity precedes institutional allocation phases."

Market Outlook & Price Scenarios

Market structure suggests two primary scenarios based on the proposal's outcome. First, approval could trigger a re-rating of crypto infrastructure equities. Second, rejection or dilution may reinforce the current fear sentiment. The 12-month institutional outlook hinges on the final rule's stringency. A favorable outcome could catalyze a multi-year integration cycle.

• Bullish Invalidation Level: $72,800. A daily close above this resistance confirms a breakout from the current consolidation. This level corresponds to the 0.786 Fibonacci retracement and would invalidate the bearish structure.
• Bearish Invalidation Level: $68,200. A sustained break below this Fibonacci 0.618 support would indicate a failure of the current accumulation zone. This level must hold to maintain the bullish higher-timeframe structure.

The 5-year horizon suggests that successful integration could normalize crypto payment flows. This would mirror the adoption curve of electronic trading in the 1990s. Institutional portfolios may allocate a standard percentage to digital asset payment corridors. The GENIUS bill's passage would further cement this trend. Market analysts should monitor the Fed's final rule publication date for confirmation.