Trump Signs Executive Order Requiring Review of Restrictions on Cryptocurrency Companies' Access to the U.S. Payment System
BlockBeats News, May 20th. On Tuesday, local time, U.S. President Trump signed an executive order requiring the federal government and the Federal Reserve to review the existing regulatory framework to promote deeper integration of digital assets and fintech into traditional financial services and the payment system.
The executive order instructs U.S. financial regulatory agencies to review existing rules in the next three months and identify any "unreasonable barriers" that hinder fintech companies from partnering with federally regulated financial institutions. Within six months, regulatory agencies are also required to take measures to encourage financial innovation.
In particular, the order specifically calls for the Fed to reassess the eligibility of uninsured depository institutions and non-bank financial firms to access payment accounts and payment services. The document also requires research by the 12 regional Feds to see if they can independently open payment accounts to relevant entities without depending on approval from the Fed Board.
Analysis suggests that this policy may benefit Wyoming special purpose depository institutions and similar structured crypto companies. Previously, a Wyoming SPDI has obtained a limited version of the "master account" from the Kansas Fed. Other crypto firms are also seeking similar qualifications.
Reports indicate that the Fed is currently studying a more formalized "master account lite" mechanism and proposed relevant rules in December of last year.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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