Hassan Maishera
TL;DR
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Donald Trump has ordered the Federal Reserve to review its policies on granting fintech and crypto firms direct access to U.S. payment systems, including “master accounts” that provide direct access to Fed rails.
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The executive order pushes regulators to reduce barriers to financial innovation and consider broader access for non-bank firms.
U.S. President Donald Trump has directed the Federal Reserve to reassess its policies on granting fintech companies — including crypto firms — direct access to the U.S. central bank’s payment infrastructure.
The move comes through a new executive order aimed at reshaping how emerging financial technologies integrate with traditional banking systems.
Executive Order Targets “Overly Burdensome” Rules
On Tuesday, Trump signed an executive order titled “Integrating financial technology innovation into regulatory frameworks.”
The order calls on federal regulators to eliminate policies that may be “overly burdensome” and potentially limit innovation in the financial sector.
It specifically urges a broader review of how fintech and digital asset firms interact with the Federal Reserve’s payment systems.
At the center of the directive is the Federal Reserve’s control over access to its payment rails.
Under the Federal Reserve Act, access to Fed payment systems is typically reserved for licensed depository institutions. This has pushed many crypto and fintech firms to seek banking licenses or alternative charter structures.
The order instructs the Fed to:
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Review its rules governing access to Reserve Bank payment accounts
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Consider extending access to fintech and crypto firms
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Clarify whether individual Federal Reserve banks can independently approve or deny access
These accounts, commonly known as “master accounts,” provide direct access to core U.S. payment infrastructure, reducing reliance on intermediary banks.
Push for Direct Access to “Master Accounts”
Master accounts are highly sought after in the crypto industry because they allow firms to settle payments directly through the Federal Reserve system.
If granted more broadly, such access could significantly improve transaction speed, liquidity management, and institutional onboarding for digital asset companies.
The executive order also frames fintech firms as non-bank entities operating in areas such as blockchain and digital asset services.
The Federal Reserve has been instructed to deliver a comprehensive report to the White House within 120 days.
That report must assess current policies and explore potential pathways for expanding payment system access to fintech and crypto firms.
The question of whether crypto firms should access Fed payment rails has become increasingly controversial. In March, the Kansas City Fed approved a “limited purpose account” for Payward — the parent company of crypto exchange Kraken.
The arrangement gave Kraken partial access to U.S. payment rails for high-value settlement, though with restrictions such as no interest on reserves.
Kraken co-CEO Arjun Sethi described the move as a step toward the “convergence of crypto infrastructure and sovereign financial rails.”
Traditional financial institutions have strongly criticized the move toward broader access. The Bank Policy Institute — which represents major U.S. banks — warned that approving such accounts before establishing a full framework for “skinny” master accounts could create regulatory risks.
Regulatory Framework Still Evolving
The Federal Reserve previously proposed a framework for “skinny” master accounts in December. These accounts would provide limited access to payment systems while excluding features such as interest payments on reserves or borrowing from the discount window.
Meanwhile, lawmakers have also entered the debate. In the U.S. Congress, the Payments Access and Consumer Efficiency (PACE) Act has been introduced to expand payment system access for select providers, including fintech and crypto firms. The bill has already attracted support from industry groups, though it remains in early stages.
