U.S. President Donald Trump signed an executive order on May 19 directing the Federal Reserve and federal agencies to assess whether crypto and fintech firms should gain direct access to Reserve Bank payment systems. The order, titled “Integrating Financial Technology Innovation into Regulatory Frameworks,” covers policy changes for digital asset firms and blockchain-based services involving master accounts and settlement access.
The order instructs the Federal Reserve Board to evaluate rules governing access to Reserve Bank payment accounts and services, and to determine whether non-bank fintech and crypto firms can qualify under updated policies. The Fed must also examine whether each of the 12 regional Federal Reserve Banks can independently approve such access, with findings due within 120 days.
Currently, the Federal Reserve Act limits master accounts primarily to licensed depository institutions. The order directs a review of whether these rules can be expanded to non-bank digital asset firms. If approved, crypto firms would connect directly to Fedwire and other payment systems, reducing dependence on correspondent banks for dollar settlement.
Attention intensified after the Kansas City Fed granted Kraken’s parent company Payward a limited master account for its Wyoming-based banking arm. The account grants Kraken Financial access to U.S. payment rails but excludes interest earnings and Fed borrowing privileges. Kraken Co-CEO Arjun Sethi described the approval as a step toward deeper integration between crypto infrastructure and federal payment systems.
Banking groups raised concerns. The Independent Community Bankers of America questioned allowing crypto-linked institutions into Fed systems without traditional bank status. The Bank Policy Institute criticized timing, stating approval came before a formal Fed-wide framework. Wyoming Special Purpose Depository Institutions still lack federal deposit insurance coverage, adding regulatory complexity.
The order also directs the SEC, CFTC, and four other agencies to review fintech rules within 90 days, identifying restrictions affecting partnerships with regulated financial institutions. On Capitol Hill, the Payments Access and Consumer Efficiency Act (PACE Act) proposes extending Fed payment services to certain non-bank providers. The order does not mandate direct access; it requires regulators to submit policy options and legal assessments within set timelines.