President Donald Trump signed an executive order Tuesday requiring regulators to dismantle barriers preventing crypto and fintech firms from accessing U.S. payment systems. The directive targets the Federal Reserve's master account system, which has historically blocked non-bank entities from direct payment rail connections. Agencies now have three months to audit relevant regulations and six months to implement changes.
Breaking the Charter Barrier
Crypto firms have long been forced to obtain costly banking charters just to move money through America’s payment infrastructure. The order specifically challenges this requirement by mandating the Fed evaluate opening master accounts to non-bank entities. Regional Reserve banks currently can't independently approve these accounts without Board of Governors oversight—a constraint the order demands immediate review.
Banking Sector Opposition
The Bank Policy Institute warned last month that approving Kraken's March 2024 master account was premature without finalized frameworks. Community bankers echo this, with the Independent Community Bankers of America demanding a pause on new stablecoin and master account policies. They argue crypto activities should face equivalent regulations to traditional banks.
Deadline-Driven Timeline
The Fed now faces a 120-day clock to report findings to the White House on crypto payment access. This follows their December 2023 proposal for 'skinny' master accounts offering restricted access without full banking privileges. The executive order effectively overrides the current policy gridlock, forcing concrete action within months.
What Happens This Summer
Regulators must submit their regulatory audit by August 18. The order makes clear that regional Fed banks could gain new authority to greenlight accounts without Washington approval—a key win for crypto firms tired of regulatory limbo. The clock started ticking the moment Trump signed it.
