Trump Directs Government, Fed to Examine Banking Access for Crypto Companies
President Donald Trump signed an executive order on Tuesday that could fundamentally reshape how crypto and fintech companies connect to the U.S. financial system, by formally placing the question of crypto firms’ access to Fed payment rails at the center of federal regulatory policy.
The order, titled “Integrating Financial Technology Innovation into Regulatory Frameworks” and dated May 19, 2026, sets policy that the federal government “must update regulations to allow integration of digital assets and innovative technology into traditional financial services and payment systems” and “must also remove overly burdensome and fragmented regulations and supervisory practices that form barriers to entry and primarily benefit incumbent financial services firms.”
Under the Federal Reserve Act, Federal Reserve banks have the authority to approve or deny applications for access to Fed payment rails. Qualified applicants are generally licensed depository institutions, prompting some crypto firms to pursue a federal charter license. The new order signals the White House wants that status quo challenged.
The order gives regulators 90 days to identify barriers and asks the Fed to report within 120 days on expanding master account access. Covered activities include payment processing, lending, digital banking, securities and commodities market activity, blockchain-based services, and other digital asset services.
At the heart of the order is its treatment of so-called “master accounts”, the most direct form of access to U.S. payment infrastructure. 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, allowing restricted access to Fedwire and limited overnight balances. Other firms, including Ripple, Anchorage Digital and Wise, have also sought or discussed access to Federal Reserve payment services.
Kraken Co-CEO Arjun Sethi hailed the earlier Kansas City Fed approval as the “convergence of crypto infrastructure and sovereign financial rails.”
The order’s definition of “fintech firm” is deliberately wide, sweeping in virtually every corner of the crypto industry. The order refers to fintech firms as non-bank companies, including businesses operating digital asset-related and blockchain-based services.
The timing is no coincidence. Just days earlier, on May 14, 2026, the Digital Asset Market Clarity Act cleared the Senate Banking Committee on a 15-9 vote, with two Democrats crossing the aisle after a last-minute bipartisan deal. The administration has set a July 4 target for full congressional passage. The executive order is procedurally complementary, where the CLARITY Act defines who regulates what, this order tells regulators to start dismantling existing fragmented frameworks now.
The White House framed current rules as ones that “favor incumbents at the expense of innovators,” language that Coinbase’s Paul Grewal, Custodia’s Caitlin Long, and Sen. Cynthia Lummis praised. The American Bankers Association, however, called for unified standards for all bank-like entities, while the Independent Community Bankers of America defended Fed discretion and urged a pause on stablecoin and master account policies.
There is a crucial caveat: the order does not compel the Fed. The Fed-related sections explicitly use the word “requested” rather than “directed,” reflecting the central bank’s independence, a constitutional design feature the order does not, and cannot, override.
The review will also land under new Fed leadership. Kevin Warsh was confirmed by the Senate on May 13, 2026 as the 17th Chair of the Federal Reserve, succeeding Jerome Powell whose term as chair concluded on May 15. That means the 120-day evaluation requested in the order will be conducted by a Board operating under new leadership for the first time in eight years.
What the order firmly accomplishes, regardless of what the Fed decides, is putting crypto firms’ access to Fed payment rails squarely on the official federal agenda, with a presidential deadline attached. For an industry that has spent years fighting for a seat at the table, that alone marks a decisive shift.
Glostarep had earlier reported that Bitcoin, Ether and XRP bounced back after U.S senate moved to limit Trump’s Iran war authority
