Trump Orders Review of Fintech Access to Federal Reserve Payment Systems

Financial regulators have also been asked to review rules that could be amended to simplify applications for eligible fintech firms seeking bank and credit union charters.

US President Donald Trump signed an executive order on Tuesday to review barriers that may be hindering fintech innovation or restricting access to banking partnerships and payment rails.

The order directs the Federal Reserve Board to review the legal, regulatory, and policy framework governing fintech and crypto firms’ access to Federal Reserve payment systems and submit a report to Trump within 120 days.

The governors have also been asked to evaluate the Federal Reserve’s legal authority to provide direct access to fintech and crypto firms and to explore “options for expanding such access to the extent permitted by law, subject to appropriate risk management requirements.”

Federal Reserve payment systems provide access to core banking infrastructure, allowing money to move more efficiently while reducing reliance on intermediary banks. Fintech and crypto firms have encountered significant challenges in gaining access to banking services.

In some of the most extreme cases, firms faced debanking and lost access to banking rails as part of what has been labeled “Operation Chokepoint 2.0.”

Review Targets Barriers in Bank Fintech Partnerships#

As part of the order, the heads of each US federal financial regulator have been asked to review, over the next 90 days, regulations, orders, and no-action letters that may be blocking fintech firms from forming partnerships with federally regulated institutions such as credit unions, broker-dealers, and investment advisers.

They are also required to review existing regulations, guidance, supervisory practices, and application procedures and identify any that could be updated “to facilitate innovation.”

“The United States is a global leader in financial innovation, driven in part by the rapid growth of financial technology and fintech firms,” Trump wrote in the executive order.

“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.”

The Trump administration has reversed many of the policies linked to crypto debanking. In January, the Cato Institute found that most debanking cases in the US were driven by government pressure rather than the policies of individual banks.

Regulators Consider Streamlined Bank and Credit Union Charter Applications#

The heads of the federal financial regulators have also been asked to review regulations, guidance documents, orders, and no-action letters that could be revised to simplify applications for eligible fintech firms seeking bank charters, credit union charters, deposit or share insurance, and other federal licenses.

A national bank trust charter allows a financial institution to carry out fiduciary activities such as trust services, custody, and asset safekeeping.

In December, the Office of the Comptroller of the Currency conditionally approved five applications for crypto-related national trust banks, including First National Digital Currency Bank, Ripple, BitGo, Fidelity Digital Assets, and Paxos.