Trump orders Fed review on crypto access to payment system

President Trump signed an executive order on May 19 directing federal regulators to review rules that may limit fintech and crypto firms from accessing U.S. payment infrastructure. The order sets a 120-day deadline for the Federal Reserve and 90- to 180-day deadlines for other agencies to identify barriers and act on changes.

Six federal financial regulators must examine existing regulations, guidance, supervisory practices and application processes that limit fintech entry. The agencies named are the Securities and Exchange Commission, the Commodity Futures Trading Commission, the Consumer Financial Protection Bureau, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency and the National Credit Union Administration. Agency heads have 180 days to act on findings in coordination with the White House assistant for economic policy. The order lists safety, soundness, consumer protection and market integrity as guardrails for any changes.

The Fed has 120 days to complete a parallel review of whether uninsured depositories and nonbank firms, including crypto companies, can obtain Reserve Bank payment services. The review asks the Fed to consider whether individual Federal Reserve Banks may decide on access independently, a question linked to prior disputes over master account access for crypto-focused banks.

Where existing law allows expanded access, the Fed is directed to publish clear application procedures. Complete applications should receive a decision within 90 days, according to the order.

Industry figures responded to the directive. Caitlin Long, founder of Custodia Bank, welcomed the review; Custodia has argued the Fed denied master account access to institutions it believes were legally eligible and lost a 2023 court challenge on that issue. Earlier this year, Kraken became the first crypto firm to connect directly to the Fed, while other companies such as Ripple remain in the application pipeline.

The directive follows earlier executive actions from the administration addressing alleged crypto-related debanking and regulatory hurdles. Over the next 90 to 180 days, regulators will issue reviews and possible policy changes that could affect how nonbank firms participate in the U.S. payment system.