Trump tells Fed to consider fintech access to payment accounts

• The executive order asks the Fed to consider expanding access to 'master accounts' - essentially bank accounts for banks that allow direct fund transfers through the Fed's payment system including Fedwire
• Crypto exchange Kraken received Fed master account access in March 2026, while Ripple, Anchorage Digital, and money transfer company Wise are seeking similar approval
• The Fed had previously signaled openness to granting more crypto and fintech firms access to its payment rails, consulting in December on a new restricted payment account type similar to Kraken's arrangement

Summary

Key Development:

President Donald Trump signed an executive order on May 19 directing the Federal Reserve and other regulators to review rules potentially hindering financial innovation, with particular focus on expanding fintech access to the Fed's payment systems.

Main Points:

The order specifically calls on the Fed to examine its policies regarding "master accounts"—payment accounts that allow holders to move funds directly through the Fed's payment infrastructure, including Fedwire. These accounts function essentially as bank accounts for financial institutions, enabling direct access to wholesale payment systems and overnight balance holdings.

Companies and Sector Impact:

Several fintech and crypto firms are seeking or have obtained master account access:

• Kraken (crypto exchange): Granted Fed master account in March, gaining Fedwire access
• Ripple, Anchorage Digital (crypto firms) and Wise (fintech money transfer): Currently seeking master accounts

Market Context:

The Fed has previously indicated willingness to expand payment rail access to more crypto and fintech companies. In December, the central bank consulted on a new restricted payment account type similar to Kraken's arrangement.

Implications:

This executive action signals a potentially more accommodating regulatory environment for non-traditional financial firms. Expanded Fed payment system access could significantly benefit fintechs and crypto companies by reducing reliance on traditional banking intermediaries, lowering transaction costs, and enhancing operational efficiency. The move may accelerate financial innovation and competition while raising questions about regulatory oversight and systemic risk management as non-bank entities gain deeper integration into core payment infrastructure.