Trump’s Fintech EO Could Finally Let Coinbase and Ripple Bank Like JPMorgan

Key Takeaways

• Trump signed an EO directing the Fed to review giving Coinbase, Ripple, and Circle direct access to US payment rails without relying on banks
• The Fed has 120 days to report on expanding master account access, as Kraken became the first crypto firm ever to win limited Fed access
• Coinbase, Ripple, Circle, and Anchorage are all pursuing similar access while banking groups push back, demanding a pause on the new policy

For most of crypto’s existence, companies like Coinbase and Ripple could not directly access the US payment system. To move money, settle transactions, or handle customer deposits, they still needed traditional banks sitting in the middle. This arrangement may now be shifting. This week, President Donald Trump signed an executive order directing regulators and the Federal Reserve to review whether crypto firms should get any access to the country’s payment systems.

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How Trump’s Fintech EO Ends a Decade of Banks Blocking Crypto From the Fed

Trump’s crypto executive order asks federal agencies to review rules that may limit fintech and digital asset firms from accessing financial services traditionally reserved for banks. One of the biggest questions is whether crypto firms could eventually receive Fed master accounts. This would give them direct access to payment systems like Fedwire without relying on intermediary banks. The order further said,

“It is therefore the policy of the United States to streamline regulatory processes, reduce unnecessary barriers to entry, and encourage collaboration between fintech firms, federally regulated financial institutions, and Federal financial regulators.”

The order gives regulators 120 days to study how uninsured depository institutions and certain non-bank firms could gain access to those systems.

The discussion is no longer just theoretical. Earlier this year, Kraken Financial became the first crypto-linked firm to receive limited access to a Federal Reserve master account. This was through its Wyoming banking charter.

This decision immediately triggered debate inside the banking industry. Several trade groups are arguing that the Fed should move cautiously before extending broader crypto banking access.

Ripple’s Fed access has also become part of the conversation. This is alongside firms including Coinbase, Circle, Anchorage Digital, and Wise. All of which have explored ways to connect more directly with payment rails.

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Banks and Crypto Firms Are Split on Latest Crypto Regulation

The executive order describes some existing financial rules as “overly burdensome.” It says they can favor large established institutions over newer firms.

Crypto companies welcomed the move. Coinbase Chief Legal Officer Paul Grewal said outdated payment rules have mostly benefited traditional players at the expense of innovation.

Banking groups were more cautious. The Independent Community Bankers of America said the Federal Reserve should retain broad authority over who receives access to master accounts and payment services.

The order does not force the Fed to approve any applications. But it does put the issue directly in front of regulators at a time when crypto firms are pushing for a larger role inside the traditional financial system.

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