Trump orders major shake-up in US crypto rules

US President Donald Trump has instructed federal agencies to prepare a comprehensive regulatory framework that ensures digital assets and next-generation financial technologies are smoothly integrated into existing payment and financial systems. The executive order, signed at the White House, aims to promote the healthy adoption of digital assets and innovative technologies across the American financial sector.

Focus on simplified regulations

At the core of the executive order lies a drive to simplify regulatory processes and position the US financial system for the future. The document adopts a policy that encourages cooperation among fintech companies, federal financial institutions, and regulators, with the intention of lifting unnecessary barriers.

Under the plan, financial regulators are required to review their existing rules within the next three months. This review is expected to identify legislation that poses unnecessary hurdles to fintech companies seeking to partner with federal agencies. Within six months, regulators will be empowered to introduce measures that accelerate innovation.

Federal Reserve and access to payment accounts

The order also places fresh expectations on the US Federal Reserve. It calls for the Fed to reassess how uninsured deposit institutions and non-bank financial companies gain access to payment accounts.

In addition, there is a question of whether the 12 regional banks under the Fed can independently grant payment accounts without central oversight. This is particularly relevant to so-called special purpose depository institutions in Wyoming, which could gain a competitive edge. Earlier this year, the Kansas City branch of the Federal Reserve granted a limited-access “master account” to Kraken, a Wyoming-based digital bank initiative. Other companies have made similar access requests.

Mini glossary: The Wyoming SPDI (Special Purpose Depository Institution) is a new-generation financial institution model licensed at the state level, offering specialized services like crypto custody and digital asset management, distinct from traditional banks.

Last December, the Federal Reserve published a proposal for a so-called “skinny” master account, which would allow certain institutions to operate with a more limited scope. Should this be implemented, digital finance firms would find it easier to gain direct access to US payment systems.

Banking transparency and combating illicit activity

A second executive order signed by Trump targets the fight against illegal activities within the financial system. The Treasury Department and relevant regulators have been tasked with strengthening the Bank Secrecy Act and tightening oversight on unregistered money transfer services and peer-to-peer payment platforms.

Within this framework, the government aims to prevent undocumented immigrants from opening bank accounts or accessing payment services through illegal means, and to identify platforms that facilitate off-the-books fee payments. The Treasury has been instructed to closely monitor third-party payment providers and intermediary businesses that may violate bank secrecy regulations.

The convergence of crypto finance and traditional systems

These two sweeping executive orders from the US administration seek to both support new financial technologies and safeguard the security of the system. As cryptocurrencies and digital asset-based financial products become more widespread, these initiatives could usher in a new era of collaboration between the private sector and regulators.

The text of the executive order reads, “It is the policy of the United States to simplify regulatory processes, eliminate unnecessary barriers, and encourage cooperation between financial technology companies and federal agencies.”