Trump signed an executive order on May 19 directing the Federal Reserve to reconsider its policies on direct access to the central bank's payment infrastructure. The move could open Fed payment rails to major crypto and fintech companies including Kraken, Ripple, Coinbase, and Circle.
The order escalates an ongoing regulatory battle over whether digital asset firms should gain direct connections to the Fed's real-time gross settlement system. Currently, most crypto platforms lack this access, forcing them to work through traditional banking intermediaries. This arrangement creates friction, delays settlement, and gives traditional financial institutions control over crypto transactions.
Kraken has been particularly vocal about this restriction, arguing that direct Fed access would reduce systemic risk and improve payment efficiency. Circle, the USDC stablecoin issuer, also supports faster settlement pathways. Ripple, which has pursued its own payment infrastructure solutions, stands to benefit from clearer Fed policies on fintech integration.
The executive order directs the Federal Reserve to evaluate whether current policies unnecessarily restrict access and whether changes could improve payment system efficiency. This represents a major shift from the Biden administration's more skeptical approach to crypto integration into traditional finance.
The Fed has historically resisted granting direct access to crypto firms, citing concerns about regulatory compliance, money laundering risks, and systemic stability. However, Trump's order frames payment rail access as a competitive issue, potentially challenging these objections on policy grounds.
If implemented, direct Fed access would fundamentally alter crypto's relationship with traditional finance. Settlement would accelerate dramatically. Stablecoin utility would expand. Transaction costs would drop. The move also signals Trump's broader agenda of reducing regulatory barriers for digital assets, following his earlier executive order establishing a presidential crypto policy framework.
The Fed now faces pressure to complete this review and justify any continued restrictions on crypto firm access.