Trump Executive Order Opens Path for Crypto Firms to Fed Payment Rails
President Trump signed an executive order on May 19 directing the Federal Reserve to review whether crypto and fintech firms can obtain master accounts and direct access to core payment services. The order sets a 90-day window for regulators to review related supervisory practices, while the Fed has been given 120 days to study the question.
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The Order and Its Core Directive
President Trump signed an executive order on May 19 directing the Federal Reserve to evaluate whether non-bank financial companies, including firms working in digital assets and blockchain services, should be able to obtain Fed master accounts. The order, titled "Integrating Financial Technology Innovation into Regulatory Frameworks," does not grant access on its own. It asks the central bank to review existing law, identify legal barriers, and, where current law allows, set out an application process.
The sources differ on timing. CryptoSlate reports that the Fed has a mandate to review access policy, while NewsBTC states that decisions on completed applications would need to come within 90 days and that the Fed has 120 days to study the issue. Both descriptions point to a short, defined review period, but the two outlets cite different deadlines for different steps, and neither source reproduces the full text of the order to settle the point.
What a Master Account Would Change
A Fed master account gives eligible institutions direct access to Federal Reserve payment services, including Fedwire, the system banks use to move high-value dollar settlements. Under current rules, access is generally limited to depository institutions, which has pushed crypto firms to pursue special-purpose or national trust bank charters. Routing activity through intermediary banks can raise costs, slow settlement, and add bank-specific risk, which is the core of the industry's argument.
The order also asks the Fed to clarify whether the 12 regional Reserve Banks can independently approve or deny applications. That question has grown more pressing since the Kansas City Fed approved a limited-purpose payment account for Payward, Kraken's parent company, in March. That approval gives digital asset firms a concrete precedent, though its scope is restricted.
Scope Beyond the Fed
NewsBTC reports that the order instructs the SEC, CFTC, Office of the Comptroller of the Currency, and FDIC to review their supervisory practices within 90 days, with attention to policies that block partnerships between fintech firms and federally regulated institutions. It also asks these agencies to ease fintech applications for bank charters and deposit insurance, while stating that consumer protection, market integrity, and financial stability should be preserved. CryptoSlate's account centers on the Fed and similarly references fintech licensing practices and third-party risk-management guidance.
The order defines fintech broadly, covering digital asset services, blockchain infrastructure, payment processing, custody, lending, brokerage, and securities market operations.
Reactions and Political Context
Sen. Cynthia Lummis said fintech firms had long been excluded from privileged access enjoyed by legacy institutions, and framed the order as a route to competition and lower consumer payment costs. Coinbase Chief Legal Officer Paul Grewal said the White House acknowledged that outdated payment-access and third-party risk rules favor incumbents, and called the existing framework protectionist. These statements come from industry supporters and are not independent assessments of the policy's effects.
NewsBTC notes that Sen. Elizabeth Warren has pushed for tighter limits on banking access for crypto companies, placing the order in opposition to that position. The same day, Trump's media company Truth Social withdrew SEC filings for a Bitcoin ETF, a combined Bitcoin-Ethereum ETF, and a crypto blue chip ETF, a move NewsBTC describes as at odds with the administration's push to bring crypto further into mainstream finance.
What Comes Next
The order sets a process rather than an outcome. Whether any crypto firm gains a master account will depend on the Fed's legal conclusions, the decisions of individual Reserve Banks, and any follow-on rulemaking by federal agencies. Firms named in CryptoSlate's coverage, including Kraken, Ripple, Coinbase, Circle, Anchorage, Wise, Paxos, and BitGo, are positioned to benefit if access is expanded, but no approvals beyond Kraken's limited account have been reported.
Why It Matters
For Traders
Any master account grant would be a discrete catalyst, but the order sets a review process, so near-term settlement or operational changes for listed firms are unlikely to follow within days.
For Investors
A potential path to Fed payment rails could reduce dependence on partner banks for crypto firms, a structural shift in the sector's regulatory and operating landscape over months to years.
For Builders
If direct Fed access expands, custody, settlement, and banking integrations built around intermediary banks may need redesign, so teams should track the Fed's application criteria closely.
This article is for information only and is not financial advice. Read the full disclaimer.
