President Donald Trump signed an executive order Tuesday directing the Federal Reserve to evaluate whether crypto and fintech companies should gain direct access to its payment rails, the systems that move money between banks.
The order, titled “Integrating Financial Technology Innovation Into Regulatory Frameworks,” instructs the Fed to examine its policies on granting access to so-called master accounts and explore options for expanding such access to non-bank firms.
What the order requires
Beyond the Fed, the SEC, CFTC, and OCC are all instructed to review rules, guidance, and interpretations 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.
The Fed is also directed to clarify whether the 12 Federal Reserve banks have the legal authority to independently grant or deny access to payment accounts, and to establish transparent application procedures with decisions made within 90 days of completed applications.
The order stated:
“To foster this financial innovation, the Federal Government must update regulations to allow integration of digital assets and innovative technology into traditional financial services and payment systems.”
Kraken and the push for master accounts
The provision most directly benefits Wyoming Special Purpose Depository Institutions and similar state-chartered entities that have long struggled to win Fed access.
Kraken Financial became the first crypto firm to secure a Fed master account in March, gaining access to the Fedwire wholesale settlement network and the ability to hold limited overnight balances.
Ripple, Anchorage Digital, and money-transfer firm Wise are among the companies pursuing similar access.
Fed had already been moving this direction
The Fed had already signaled openness to expanding its framework before Trump’s order.
In December, it published a proposal for a new type of “skinny” master account with restrictions similar to those imposed on Kraken’s.
A previous White House attempt to target Fed master account policies stalled over concerns about central bank independence.
Tuesday’s order was one of two Trump signed that day — a separate directive strengthens the Bank Secrecy Act to address what the administration calls off-the-books payments facilitated by peer-to-peer platforms.
