Trump’s Executive Order Excludes Fed and FDIC from Crypto Rules  

• Trump’s order excludes the Fed and FDIC, targeting clarity in US cryptocurrency regulations.  
• The new working group focuses on creating a national digital assets strategy.  
• Stablecoin policies will now prioritize Treasury oversight, avoiding central bank control. 

President Donald Trump has issued a new executive order addressing challenges faced by crypto and Web3 companies. The directive specifically excludes the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) from the newly formed working group on digital asset markets. The group will focus on drafting clear regulations to bolster the United States’ leadership in the cryptocurrency industry.

The working group has been entrusted with two primary goals: creating a clear regulatory framework for digital assets and evaluating the establishment of a national digital asset stockpile. Excluding the Fed and FDIC, which have faced criticism for their restrictive actions against crypto businesses, represents a significant change in the regulatory approach.

Fed and FDIC Excluded After Criticism of Crypto Debunking

Caitlin Long, CEO of Custodian Bank, praised the move, emphasizing that these entities previously worked against the crypto industry through “debunking.” Long’s company was among those reportedly targeted, alongside other crypto businesses that struggled to access banking services due to alleged pressure from political figures. High-profile entrepreneurs, including Elon Musk and Brian Armstrong of Coinbase, have also highlighted cases of financial institutions denying services to crypto firms under regulatory scrutiny.

Stablecoin Policy Shift: Central Bank’s Role Eliminated

The executive order also addresses stablecoin regulation. According to the directive, the Federal Reserve will no longer play a role in shaping stablecoin policies. Instead, regulatory responsibility will likely fall to the Treasury Department, with Scott Bessent, the Treasury Secretary, taking a leading role. Experts argue this approach better aligns with the nature of stablecoins as payment instruments rather than fractional banking systems.

The order underscores that stablecoin issuers fully backed by reserves should not face bank-like regulations. Experts point out that these instruments serve primarily as faster and more cost-effective payment tools. Basic disclosure requirements and collateral regulations could address risks without imposing unnecessary financial stability concerns.

This strategic pivot marks a win for the crypto industry and opens new pathways for innovation. By excluding institutions traditionally resistant to digital assets and enhancing clarity on stablecoin regulations, the US aims to foster an environment where blockchain and crypto technologies can thrive.