Trump Orders Review of Fintech Payment Rules Amid Industry Backlash
US President Donald Trump signed an executive order on Tuesday requiring federal financial regulatory agencies to re-evaluate rules restricting fintech and digital asset companies' access to the US payment system. The order mandates that the Federal Reserve assess the legal framework governing relevant institutions' access to payment accounts within 90 days.
The White House stated that current rules 'favor incumbents at the expense of innovators.' This language was praised by Coinbase's Paul Grewal, Custodia's Caitlin Long, and Senator Cynthia Lummis. The executive order builds on Trump's earlier orders, which established a Strategic Bitcoin Reserve and advanced the GENIUS Act.
Industry executives immediately voiced support for the new order, while banking trade groups issued cautious responses. The American Bankers Association (ABA) demanded unified regulatory standards for all bank-like entities, while the Independent Community Bankers of America (ICBA) defended Federal Reserve discretion and urged a pause on stablecoin and master account policies.
Kevin Warsh is set to be sworn in as Chair of the Federal Reserve this week, succeeding Jerome Powell. As an advisor to cryptocurrency investment firm Electric Capital, Warsh has called for reforms to the regulatory system.