President Donald Trump signed two major executive orders focused on crypto, fintech, and the U.S. banking system, with the first order instructing the Federal Reserve to evaluate its policies on granting fintech firms, including crypto companies, direct access to Fed payment rails. According to reports from Reuters, the order urges the federal government to remove regulations that may be 'overly burdensome' to fintech innovation. Under the Federal Reserve Act, Federal Reserve banks have the authority to approve or deny applications for access to Fed payment rails, with qualified applicants generally being licensed depository institutions. The administration has given regulators clear deadlines: within 3 months, agencies must identify rules blocking fintech growth, and within 6 months, they must begin simplifying regulations and lowering entry barriers.
The May 19 executive order directs the Federal Reserve and federal banking regulators to conduct a comprehensive review of eligibility frameworks for Reserve Bank master accounts and payment services, with specific attention to uninsured depository institutions and non-bank firms handling digital assets. As reported by The Block, the order instructs agencies to design transparent application procedures with published criteria, written status updates, and a documented appeal path, and to rule on completed applications within 90 days of submission rather than letting them sit indefinitely. The order applies to any Wyoming Special Purpose Depository Institution, OCC trust bank, or licensed fintech that submits a completed application, with Ripple, Anchorage Digital, and Wise identified as the three firms most often named as front-runners. The order does not declare any firm eligible and does not override the Federal Reserve's Account Access Guidelines published in August 2022, but it directs the Fed to apply its existing tiered review framework on a clock and in public, which represents a structural change from the previous indefinite review process.
Granting Fed master account access to crypto firms has been a subject of heated debate, especially after the Kansas City Fed approved a so-called 'limited purpose account' for Payward, the parent company of crypto exchange Kraken, in March. According to Reuters, the arrangement allowed Kraken to access core payment rails used for high-value dollar settlement, potentially enabling faster deposits and withdrawals for institutional clients. However, the approval sparked backlash from traditional banking groups, with the Bank Policy Institute saying it was 'deeply concerned' that the decision came before the Fed finalized a policy framework for 'limited purpose' or 'skinny' master accounts. The crypto industry views these orders as one of the clearest signs yet that digital assets are moving closer to the center of the U.S. financial system, with community reaction turning largely bullish across crypto X, especially among XRP supporters. Crypto analyst Chad Steingraber called the move one of the biggest pushes yet toward integrating digital assets into mainstream finance.
While the first order supports innovation, the second executive order focuses on tighter financial oversight and anti-money laundering measures. The Treasury Department has been asked to strengthen Bank Secrecy Act rules and improve customer-identification systems. Banks will also be told to monitor suspicious activity tied to payroll tax evasion, labor trafficking, and unregistered payment platforms. Earlier versions of the proposal reportedly included strict citizenship checks for all bank accounts, but banking groups strongly opposed the idea, warning it would create massive problems for online banking services. Despite traditional banking groups like the Independent Community Bankers of America warning that granting crypto companies direct access to the Federal Reserve system could increase financial risks, many in the crypto industry see these orders as a significant step toward mainstream adoption.
The same day Trump signed the executive order, the Federal Trade Commission sent warning letters to PayPal, Visa, Mastercard, and Stripe about debanking compliant crypto businesses, citing the agency's consumer-protection authority over unfair or deceptive practices in payment networks. According to The Block, this enforcement targets the propagation layer of Operation Chokepoint 2.0, where major banks dropped crypto-firm clients under regulatory pressure that was never put in writing. The letters put the four largest US payment processors on notice that ending services to compliant crypto firms without an articulable risk-based reason will be treated as a potential violation. The order also instructs agencies to coordinate with Treasury on stablecoin issuer access, which is linked to the GENIUS Act framework that the White House has been pushing alongside the broader Strategic Bitcoin Reserve and CLARITY Act packages. Market reaction will likely focus on the conditional approval catalyst, when the legal pathway becomes real with documented compliance conditions rather than indefinite review.
