Donald Trump Orders Review of Crypto Firms’ Access to Fed Payment Rails

TLDR

• Donald Trump’s executive order asks federal regulators to review rules affecting fintech and digital asset firms.
• The Federal Reserve was directed to examine how non-bank firms and uninsured depository institutions may access payment accounts.
• Crypto firms such as Kraken, Ripple and Anchorage Digital are among companies seeking closer access to Fed payment rails.
• The order gives regulators three months to identify rules that may restrict fintech-bank partnerships.
• Senator Elizabeth Warren is separately questioning OCC crypto bank charters for firms such as Ripple, Coinbase and Circle.

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U.S. President Donald Trump has signed an executive order directing federal financial regulators and the Federal Reserve to review how fintech and digital asset firms can access payment services and work with regulated financial institutions.

The order, signed Tuesday, calls for updates to regulatory frameworks so digital assets, financial technology services and other new payment tools can be integrated into traditional banking and payment systems. It states that U.S. policy should reduce unnecessary barriers for fintech firms and encourage cooperation between technology companies, banks and federal regulators.

The directive gives financial regulators three months to review existing rules, guidance and other materials that may restrict partnerships between federally regulated institutions and fintech companies. Within six months, agencies are directed to take steps that support financial innovation based on the review.

Fed Asked to Review Master Account Access

A central part of the order focuses on Federal Reserve payment accounts and services. The Fed’s master accounts allow eligible institutions to move money directly through central bank payment systems, including wholesale payment networks.

The executive order asks the Federal Reserve Board of Governors to examine how uninsured depository institutions and non-bank financial firms may be granted access to payment accounts and services. It also asks whether the 12 regional Federal Reserve Banks have independent authority to approve such access.

The issue has been closely watched by crypto firms, fintech companies and state-chartered institutions. Access to Fed payment rails can reduce reliance on intermediary banks and may allow faster movement of fiat currency tied to digital asset services.

Kraken, through a Wyoming special purpose depository institution, received access earlier this year to a limited version of a Fed master account. The account allows restricted access to Fedwire and permits limited overnight balances. Other firms, including Ripple, Anchorage Digital and Wise, have also sought or discussed access to Federal Reserve payment services.

Crypto Firms Seek Clearer Banking Routes

The executive order could be relevant for special purpose depository institutions, stablecoin issuers, crypto exchanges and fintech payment companies that have argued for clearer routes into the banking system.

The Federal Reserve has already been studying a more limited account model for certain firms. In December, it requested feedback on a possible “skinny” master account structure that would allow access under restrictions similar to those applied to Kraken.

Trump’s order also directs agencies to identify rules that may prevent banks and fintech firms from forming partnerships. That section may affect companies offering stablecoin payments, crypto custody, tokenized settlement and other digital asset services through bank-linked platforms.

Supporters of broader access say payment systems should adapt as financial technology changes. Banking groups have taken a more cautious position, saying firms performing bank-like activities should face rules comparable to those applied to banks.

Elizabeth Warren Questions Crypto Banking Charters

The order comes as Senator Elizabeth Warren has increased scrutiny of crypto firms seeking banking privileges. Warren has requested information from the Office of the Comptroller of the Currency about national trust bank charters granted or considered for crypto-related firms.

Her inquiry centers on whether companies such as Ripple, Coinbase and Circle are operating as effective crypto banks without the same safeguards required of traditional banks. The review asks the OCC to explain how it evaluates risk, consumer protection, liquidity, custody and compliance standards for these firms.

The Independent Community Bankers of America also urged caution. Rebecca Romero Rainey, the group’s chief executive, said regulators should consider gaps between banks and non-bank entities before expanding access to Reserve Bank payment accounts.

Trump signed another executive order Tuesday directing the Treasury Department and financial regulators to examine Bank Secrecy Act enforcement related to undocumented immigrants’ access to bank accounts and payment services. That order asks officials to consider how unregistered money services businesses, third-party payment processors and peer-to-peer platforms may be used to avoid reporting or tax obligations.