President Donald Trump signed an executive order on Tuesday titled "Integrating Financial Technology Innovation Into Regulatory Frameworks," directing federal financial regulators to streamline rules for fintech firms and asking the Federal Reserve to weigh broader payment system access for crypto companies and other non-bank players. The order frames overly burdensome regulation as a barrier that benefits incumbent banks at the expense of newer entrants, and sets 90-day and 180-day deadlines for regulators to identify and act on changes. As per the latest reports, the order requires federal regulators to conduct a full review within 90 days of regulations that may prevent fintech and crypto companies from obtaining bank licenses, deposit insurance, and partnerships with traditional financial institutions. "The Federal Government must update regulations to allow integration of digital assets and innovative technology into traditional financial services and payment systems," Trump stated in the order, calling for removal of "overly burdensome and fragmented regulations and supervisory practices that form barriers to entry and primarily benefit incumbent financial services firms."
Six federal financial regulators must conduct the review, including the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), and the Consumer Financial Protection Bureau. The FDIC, the OCC, and the National Credit Union Administration round out the list. Each agency must review existing regulations, guidance, supervisory practices, and application processes that limit fintech entry, with specific focus on barriers to bank charters, credit union charters, and deposit insurance for eligible fintech firms. Following the review, specific measures to simplify regulation must be proposed within 180 days in coordination with the White House Assistant for Economic Policy. The order frames safety, soundness, consumer protection, and market integrity as guardrails for regulatory changes.
The order asks the Federal Reserve Board of Governors to complete a parallel review within 120 days covering whether uninsured depositories and non-bank firms, including crypto companies, can access Reserve Bank payment services. It specifically asks the Fed to examine how uninsured depository institutions and non-bank financial firms may be granted access to Fed payment accounts and services, including the Fedwire wholesale settlement network. The Fed is directed to establish "transparent application procedures" and make decisions within 90 days of completed applications, with the regulator required to submit a report to the president within 120 days. The review requires the Fed to assess the possibility of granting non-bank companies, including crypto firms, direct access to master accounts and payment services. The Fed plans to introduce a simplified format for master accounts, having published a draft in December 2025 that would allow certain companies to access the banking system through a "lightweight" account. Master accounts are accounts held at the Federal Reserve that allow eligible institutions to settle payments directly through the central bank, instead of relying on another bank to move money through the U.S. financial system.
Custodia Bank founder Caitlin Long welcomed the directive, having long argued that the Federal Reserve has blocked legally-eligible institutions from the US payment system. The directive covers more than just the Fed, with the SEC, CFTC, and OCC all instructed to review rules that may restrict partnerships between federally regulated institutions and fintech companies. Agencies have three months to identify restrictive rules and six months to take steps that support financial innovation. Kraken Financial, a Wyoming SPDI, won a limited Fed master account in March, becoming the first crypto firm to secure direct access to the central bank's payment system. Kraken Co-CEO Arjun Sethi called the arrangement the "convergence of crypto infrastructure and sovereign financial rails." Ripple, Anchorage Digital, and money-transfer firm Wise are among companies pursuing similar access, according to Reuters. The Independent Community Bankers of America responded to Trump's initiative, with head Rebeca Romero Rainey stating there are "significant regulatory gaps" between banks and non-bank entities, emphasizing that reserve financial institutions should retain the right to deny access to issuers of stablecoins and crypto companies to ensure system stability. Ari Redbord, Global Head of Policy and Government Affairs at blockchain analytics firm TRM Labs, called the order a "concrete step" towards putting the U.S. at the forefront of digital asset adoption, framing digital asset dominance as an "American strategic interest." He pointed to the sector's explosive growth that has seen stablecoins achieve transaction volume of $33 trillion in 2025 and a market capitalization exceeding $300 billion.
