Trump Orders Federal Review of Crypto Firms’ Access to Payment Rails
May 19, 2026 — U.S. President Donald Trump has issued an executive order directing the federal government and the Federal Reserve to revisit and update the regulatory framework governing how cryptocurrency firms access payment systems integral to the financial sector.
The new executive order, signed on Tuesday, emphasizes the importance of integrating digital assets and innovative technologies into traditional financial services and payment rails. It calls for a modernization of existing regulations to foster greater collaboration between fintech companies, federally regulated financial institutions, and federal regulators.
"It is therefore the policy of the United States to streamline regulatory processes, reduce unnecessary barriers to entry, and encourage collaboration between fintech firms, federally regulated financial institutions, and Federal financial regulators," the order stated.
Review and Potential Regulatory Reforms
The directive instructs heads of financial regulatory bodies to conduct a thorough review within three months to identify any regulations or policies that may unnecessarily hinder fintech companies from partnering with federally regulated institutions. Within six months, regulators are expected to take concrete steps to encourage innovation and remove barriers discovered during the review.
A key focus of the review instructs the Federal Reserve Board of Governors to examine how payment accounts and services are accessed by uninsured depository institutions and non-bank financial firms. The order further requests that the 12 Federal Reserve Banks consider whether they can independently grant access to payment accounts without board approval.
This push may particularly benefit entities like Wyoming’s special purpose depository institutions (SPDIs), which operate under specific frameworks. Earlier this year, the Federal Reserve Bank of Kansas City granted Kraken, a Wyoming-based SPDI, limited access to its master account, a first-of-its-kind arrangement. Other similar firms have been seeking this type of access, and the Fed is currently working on formalizing a "skinny" master account option to facilitate broader participation. A proposal aimed at enabling access for such firms was published by the Fed in December 2025. ### Additional Executive Order Targets Financial Security
Alongside this order, President Trump signed a second executive order directing the Treasury Department and financial regulators to strengthen the Bank Secrecy Act. This order is designed to better prevent undocumented immigrants from accessing bank accounts or payment services by targeting unregistered money services businesses, third-party payment processors, and peer-to-peer payment platforms that might facilitate "off-the-books" wage payments or attempts to circumvent tax reporting.
Industry Response
Rebecca Romero Rainey, CEO and president of the Independent Community Bankers of America (ICBA), welcomed the review but cautioned that significant regulatory gaps remain between banks and non-bank entities. She emphasized that similar activities should be regulated similarly and highlighted the discretionary authority of the Federal Reserve Banks in granting master account access, especially regarding crypto-related firms.
"Federal Reserve officials conducting their review of access to Reserve Bank payment accounts must recognize that the Reserve Banks retain discretion under federal law to deny or grant master account access to special-purpose depository institutions, stablecoin issuers and other crypto-related entities," Rainey said. She also urged policymakers to take a holistic approach in assessing new policies on stablecoins, Federal Reserve master accounts, and national trust charters before moving forward.
Context and Significance
This executive order underscores the ongoing efforts of U.S. regulators to adapt financial infrastructure to accommodate the rapidly evolving digital asset landscape. By directing a comprehensive review, the administration seeks to clarify, modernize, and potentially ease the pathways for cryptocurrency firms to access the financial system’s critical payment rails, potentially accelerating innovation and adoption.
The Federal Reserve and other regulators have been actively exploring how to balance innovation with security and financial stability. The order signals a push toward greater inclusivity for fintech and crypto entities within mainstream financial systems while maintaining oversight aimed at protecting the broader economy.
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