On May 19th, President Trump issued an order instructing federal regulators to simplify rules for financial technology companies. He also asked the Federal Reserve to consider allowing companies like cryptocurrency firms and other non-bank businesses greater access to the U.S. payment system.
In my research, I’ve found that this order argues current regulations are too strict, unfairly helping established banks while making it harder for new companies to compete. It also pushes regulators to quickly – within 90 to 180 days – pinpoint and address any changes in the regulatory landscape.
Streamlining Federal Rules for Fintech Firms
A team of six government agencies will be reviewing the matter. This group includes the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), and the Consumer Financial Protection Bureau, along with the FDIC, the Office of the Comptroller of the Currency (OCC), and the National Credit Union Administration.
Every agency needs to examine its current rules, instructions, oversight methods, and application procedures to identify anything that makes it difficult for fintech companies to enter the market. These reviews should focus on obstacles preventing eligible fintech firms from obtaining bank charters, credit union charters, and deposit insurance.
Government agencies have six months to address the report’s recommendations, working with the White House’s economic advisor. The report emphasizes safety, stability, protecting consumers, and maintaining a fair market as key principles.
Federal Reserve Payment Account Review
The directive instructs the Federal Reserve to conduct a separate assessment over the next four months. This review will determine if institutions without deposit insurance, like certain financial companies and crypto businesses, are allowed to use the Reserve Banks’ payment systems.
The inquiry also considers if each Federal Reserve Bank can make its own decisions on these requests, a matter similar to past disagreements regarding access to master accounts for cryptocurrency companies like Custodia.
The order directs the Federal Reserve to clearly explain how to apply for expanded access when current laws permit it. The Fed must then make a decision on each complete application within 90 days.
Industry Reaction
Caitlin Long, founder of Custodia Bank, praised the recent directive, as she’s consistently maintained that the Federal Reserve has unfairly prevented qualified banks from accessing the US payment system. Custodia itself was denied a master account in a 2023 court case. Efforts to address crypto ‘debanking’ also began under the Trump administration.
This new guidance comes as cryptocurrency companies are actively seeking access to the U.S. federal payment system. Earlier this year, Kraken was the first crypto firm to connect directly with the Federal Reserve, and Ripple, among others, has applications pending. Over the next three to six months, it will become clear how quickly regulators turn this guidance into official rules.
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2026-05-20 14:08