Trump urges Fed to allow fintechs payment account access

• The order asks the Fed to consider expanding access to 'master accounts' - bank accounts for banks that allow direct fund movement through the Fed's payment system - to fintechs and non-bank firms
• Crypto exchange Kraken received Fed master account access in March 2026, enabling use of Fedwire and overnight balance holdings; Ripple, Anchorage Digital, and Wise are also seeking similar access
• The Fed previously signaled openness to broader access, consulting in December on a new restricted payment account type similar to Kraken's arrangement

Summary: Trump Urges Fed to Expand Fintech Payment Access

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

Key Directive:

The order calls on the Fed to examine its approach to granting "master accounts"—effectively bank accounts for financial institutions that enable direct access to the Fed's payment systems, including Fedwire. Trump is pushing for expanded access beyond traditional banks to include fintech and non-bank firms.

Master Account Significance:

Master accounts allow holders to move funds directly through the Federal Reserve's payment rails and hold limited overnight balances, providing crucial infrastructure access previously reserved for traditional banking institutions.

Industry Developments:

• Crypto exchange Kraken received Fed master account approval in March 2026
• Crypto firms Ripple and Anchorage Digital have applied for master accounts
• Fintech money transfer company Wise is also seeking access
• The Fed signaled openness in December regarding a new type of payment account with restrictions similar to Kraken's arrangement

Market Implications:

This executive order represents significant regulatory shift favoring fintech and crypto firms, potentially leveling the playing field with traditional banks. Expanded payment rail access could accelerate fintech innovation and integration into mainstream financial infrastructure, while potentially increasing competitive pressure on traditional banking institutions.

The move signals the administration's pro-innovation stance on financial technology and cryptocurrency, likely benefiting companies seeking to operate payment services and digital asset platforms with direct Fed system access.