President Donald Trump signed an executive order Tuesday directing federal financial regulators to update rules for integrating digital assets into traditional banking.
The order gives the Federal Reserve, SEC, CFTC, and other agencies 90 days to identify regulations that impede fintech partnerships, followed by 180 days to encourage innovation.
The most critical directive targets the Federal Reserve: it has 120 days to determine if it has legal authority to grant non-bank financial companies, including digital asset firms, direct access to Federal Reserve payment accounts. If permitted, the Fed must create transparent application procedures and decide within 90 days of receiving complete applications.
The Federal Reserve has already begun moving in this direction. In March 2026, the Kansas City Fed approved a limited-purpose account for Payward, parent company of crypto exchange Kraken. The Fed last year proposed “skinny” master accounts for select firms, signaling a departure from its historically restrictive stance.
Meanwhile, crypto companies including Coinbase, Circle, Ripple, and Paxos have received conditional approval for national trust bank charters from the Office of the Comptroller of the Currency, enabling them to offer custody, staking, and trade settlement.
The move has drawn criticism. Senator Elizabeth Warren argued the approvals violate the National Bank Act and pose risks to the banking system.