- Trump signed an executive order targeting fintech and crypto banking access
- The Fed must review whether crypto firms can access master accounts
- The order calls for reducing regulations seen as restrictive to innovation
- A report must be submitted to the White House within 120 days
Trump Pushes Fed Toward Crypto Banking Access
President Donald Trump signed a new executive order directing the Federal Reserve to evaluate whether fintech and crypto firms should receive direct access to U.S. payment infrastructure.
The order, titled “Integrating Financial Technology Innovation into Regulatory Frameworks,” urges federal agencies to modernize rules viewed as limiting financial innovation.
Focus on Fed Master Accounts
A key component of the order centers on so-called Federal Reserve “master accounts,” which allow institutions to directly access the Fed’s payment rails without relying on intermediary banks.
Currently, these accounts are generally limited to licensed depository institutions, though some crypto firms have pursued special charter structures to gain access.
Trump’s order asks the Fed to clarify whether regional Federal Reserve banks have authority to independently approve or reject these applications.
Kraken Approval Sparked Debate
The issue became highly controversial after the Kansas City Fed granted Kraken parent company Payward access to a limited-purpose master account earlier this year.
The arrangement potentially enables faster institutional crypto settlements, though it excludes benefits like earning interest on reserves.
Traditional banking groups criticized the move, arguing the Fed had not yet finalized a broader framework for these specialized accounts.
Crypto Industry Pushes for Faster Integration
The order also directs regulators to identify policies that may be “overly burdensome” to blockchain and digital asset innovation.
Meanwhile, lawmakers continue advancing legislation that would formalize payment rail access for certain fintech providers.
