Just-In: Trump Signs Executive Order To Review Banking Restrictions Against Crypto Firms

U.S. President Donald Trump signed another executive order to lift regulatory constraints on fintech and digital asset firms. The order instructs federal agencies to update regulations that will pave the way for these companies to gain access to the U.S. financial system.

Trump Signs Major Executive Order For Financial Institutions

In the order, the United States is “is a global leader in financial innovation.” It also noted the fast pace of fintech growth has expanded the access to financial products and offered new economic opportunities.”

Thus, the order states that the federal government “must update regulations to allow integration of digital assets and innovative technology into traditional financial services and payment systems.”

It comes as Senator Elizabeth Warren urges for limited banking access for crypto companies. The executive order seeks to defy her claims.

Also, Trump’s order sets a government-wide policy for “streamline regulatory processes, reduce unnecessary barriers to entry, and encourage collaboration between fintech firms, federally regulated financial institutions, and Federal financial regulators.”

The order defines fintech companies in a broad manner. It includes those that provide any financial services related to digital assets and blockchain infrastructure. The rules also applies to firms offering payment processing or custodial services or lending or brokerage services and securities market operations.

Regulators To Review Banking Access For Crypto Firms

The order calls on agencies such as the Securities and Exchange Commission, Commodity Futures Trading Commission, Office of the Comptroller of the Currency and the Federal Deposit Insurance Corp. Trump has asked them to review their current supervisory practices and policies within 90 days.

The review will look for policies that “unduly impede fintech firms from entering into partnerships with federally regulated institutions.”

The Trump administration also directed regulators to consider how to streamline application processes for eligible fintech companies seeking bank charters, deposit insurance and other federal approvals. The move aims to ensure “safety and soundness, consumer and investor protection, market integrity, financial stability, and oversight.”

One of the key crypto-related components involves access to the Federal Reserve’s infrastructure. The order asks the Board of Governors of the Federal Reserve to consider granting direct access to Reserve Bank payment accounts and services to uninsured depository institutions and non-bank financial companies that deal in digital assets.

Further, the review will explore “options for expanding such access” and legal barriers to access. Trump’s order also hints at verifying the possibility that regional Federal Reserve banks could either approve or disapprove applications.

If current law allows better access, the Fed is requested to establish “transparent application procedures.” Moreover, Trump urged the Fed to make decisions within 90 days of applications being completed.

The measure may impact Wyoming special purpose depository institutions. It includes companies specializing in digital currency who want to apply for a Federal Reserve Master account and payment system eligibility.

However, despite the pro-crypto executive order, Trump’s Truth Social made a completely opposite move. It withdrew SEC filings for Bitcoin ETF, dual Bitcoin-Ethereum ETF, and crypto blue chip ETF.