- President Donald Trump signed an executive order aimed at integrating digital assets and fintech technology into the traditional financial system.
- The executive order says the U.S. government should pursue policies that promote cooperation between fintech companies and federally regulated financial institutions while reducing unnecessary barriers to entry.
- The move could benefit virtual asset (cryptocurrency)-friendly financial institutions such as Wyoming special purpose depository institutions (SPDIs).
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President Donald Trump signed an executive order aimed at bringing digital assets and fintech technology into the traditional financial system.
CoinDesk reported on May 19 that Trump directed federal agencies to “modernize the regulatory framework so digital assets and innovative technologies can be integrated into existing financial services and payment systems.”
The order says the U.S. government should pursue policies that promote cooperation between fintech companies and federally regulated financial institutions while reducing unnecessary barriers to entry.
Heads of U.S. financial regulatory agencies have three months to review existing rules and guidance and identify provisions that excessively restrict cooperation between fintech firms and financial institutions. They were also instructed to devise measures to promote such innovation within six months.
The order also directs the Federal Reserve to review how nonbank financial companies and uninsured depository institutions access payment system accounts. It also calls for a review of whether the Fed’s 12 regional reserve banks should be allowed to approve payment system accounts independently.
The move could benefit crypto-friendly financial institutions such as Wyoming special purpose depository institutions, or SPDIs. Earlier this year, the Federal Reserve Bank of Kansas City granted Kraken’s Wyoming SPDI limited access to a master account.