US President Donald Trump has signed an executive order to review barriers hindering innovation in the financial technology (fintech) sector, as well as issues regarding bank partnerships and access to payment systems. The document tasks the Federal Reserve Board with evaluating the legal and regulatory framework governing the access of fintech and crypto companies to Fed payment systems. This is reported by Cointelegraph.com reports .
According to the order, Federal Reserve governors must study and submit a report within 120 days on the legal foundations for granting fintech and crypto firms direct access. This measure aims to ensure efficient capital movement and expand access to core banking infrastructure, reducing reliance on intermediary banks.
In recent years, fintech and crypto companies have faced significant difficulties in accessing banking services, including instances of being cut off from the banking system under a campaign known as "Operation Chokepoint 2.0." The Donald Trump administration has stated its intention to reverse this policy and simplify regulations to support innovation.
Over the next 90 days, heads of US federal financial regulators will review rules that hinder fintech firms from partnering with credit unions, broker-dealers, and investment advisors. Proposals will also be prepared to optimize the application process for bank charters and federal licenses.
In the order, Donald Trump emphasized that the US is a global leader in financial technology and that updating regulatory practices is necessary to maintain this position. According to Cato Institute research, many instances of debanking were the result of government pressure rather than bank policies.
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