President Donald Trump is set to sign an executive order to give cryptocurrency companies access to the Federal Reserve’s payment system.
This order is expected to reverse restrictions from the Biden administration that prevented crypto-focused banks from obtaining master accounts, which are necessary for direct interaction with the Fed’s financial infrastructure.
New executive order challenges Crypto banking barriers
The upcoming order addresses what industry leaders call “Operation Chokepoint 2.0,” an alleged effort by regulators to block crypto businesses from banking services. Under the previous administration, institutions like Custodia Bank were denied access to master accounts, preventing them from operating at the same level as traditional financial institutions.
The absence of cryptocurrency accounts compelled banks that serve the crypto market to depend on outside intermediaries which restricted their capability to deliver smooth financial operations. The executive action from President Trump will direct the Federal Reserve to eliminate restrictions which will provide digital asset firms with equal opportunities for banking services.
Legal preparations underway for the executive order
Although the Federal Reserve operates independently of the executive branch, Trump is willing to challenge this autonomy. Reports indicate that legal advisors are reviewing potential challenges before the order’s release.
Bo Hines, Executive Director of the Presidential Working Group on Digital Assets, hinted that action is imminent, stating that the industry should expect developments soon. The legal team aims to eliminate any remaining regulatory obstacles preventing crypto firms from securing financial services.
Republican lawmakers push for banking fairness
The issue about crypto banking access moves throughout different governmental institutions. Senator Tim Scott proposed the Financial Integrity and Regulation Management (FIRM) Act they hope will stop regulators from using bad reputation to deny banking services to applicants.
Scott argued that regulatory agencies have used reputational concerns to block industries they disfavor, including cryptocurrency. He emphasized that financial institutions should decide based on creditworthiness rather than regulatory pressure.
Crypto executives, including Coinbase’s Brian Armstrong and Anchorage’s Nathan McCauley, have testified before Congress about alleged efforts by the Fed, FDIC, and OCC to push crypto businesses out of the U.S. banking system. Industry leaders believe these actions mirror the original Operation Choke Point, an Obama-era initiative that targeted firearm dealers and payday lenders.
If signed, this order would be Trump’s third significant action on digital assets since returning to office. His previous orders included establishing a strategic Bitcoin reserve and forming a working group to oversee digital asset markets. The new directive signals a broader push to integrate cryptocurrency into the nation’s financial framework.