- Trump’s executive order directs the Federal Reserve to evaluate extending master account access to crypto and fintech firms.
- Direct Fed payment access could allow crypto firms to use Fedwire and reduce reliance on correspondent banking systems.
- The review follows Kraken’s limited master account approval and rising concerns from traditional banking groups.
U.S. President Donald Trump issued an executive order in Washington on May 19, 2026, directing federal agencies and the Federal Reserve to review whether crypto and fintech firms should gain direct access to Reserve Bank payment systems. The order, titled “Integrating financial technology innovation into regulatory frameworks,” also covers policy changes for digital asset firms and blockchain-based services involving master accounts and settlement access.
Federal Reserve Payment Access Review Ordered
The executive order instructs the Federal Reserve Board to evaluate rules governing access to Reserve Bank payment accounts and services. It also asks whether non-bank fintech and crypto firms can qualify under updated policies.
According to the order, the Fed must assess its legal authority to extend payment account access to “covered firms.” It must also examine whether each of the 12 regional Federal Reserve Banks can independently approve such access.
Currently, the Federal Reserve Act limits master accounts mainly to licensed depository institutions. However, the order directs a review of whether these rules can expand to non-bank digital asset firms.
If approved, access would allow crypto firms to connect directly to Fedwire and other payment systems. That would reduce dependence on correspondent banks for dollar settlement and transfers.
Kraken Approval Sparks Policy Debate
Attention on the issue increased after the Kansas City Federal Reserve granted Payward, the parent company of Kraken, a limited master account for its Wyoming-based banking arm.
The account allows Kraken Financial to access U.S. payment rails but excludes interest earnings and Fed borrowing privileges. According to Kraken Co-CEO Arjun Sethi, the approval represented closer integration between crypto infrastructure and federal payment systems.
However, banking groups raised concerns. The Independent Community Bankers of America questioned allowing crypto-linked institutions to access Fed systems without traditional bank status.
The Bank Policy Institute also criticized the timing, stating the approval came before a formal Fed-wide policy framework was finalized. Meanwhile, Wyoming Special Purpose Depository Institutions remain outside federal deposit insurance rules, raising additional regulatory concerns.
Regulatory Framework And Industry Response
The executive order also directs six agencies, including the SEC and CFTC, to review fintech rules within 90 days. These agencies must identify restrictions affecting partnerships between fintech firms and regulated financial institutions.
Additionally, the Federal Reserve must deliver findings within 120 days on payment account access rules. The review includes whether legal changes are needed to allow broader participation in Fed infrastructure.
Support for expanded access has also emerged in Congress through the Payments Access and Consumer Efficiency Act, known as the PACE Act. The proposal seeks to extend Fed payment services to certain non-bank providers.
The order does not mandate direct access approval. Instead, it requires regulators to submit policy options, legal assessments, and implementation pathways for review under the outlined timelines.
