United States President Donald Trump is getting ready to issue a historic executive order that can cause a stir in the financial industry. The order might change the environment for banks that focus on crypto by requiring the Federal Reserve to provide cryptocurrency firms access to its payment system.
This action attempts to level the playing field between traditional banks and their digital rivals by changing restrictions that previously prevented these organizations from getting master accounts.
Trump To Push For A New Chapter In Crypto Banking
Under the previous administration, the Federal Reserve consistently denied master account access to crypto-centric banks like Custodia. This exclusion prevented them from participating in the nation’s core financial system.
🚨NEW: The Trump Administration is apparently preparing to sign an executive order that could rescind certain Federal Reserve policies that have prevented crypto banks from accessing so-called “master accounts.”
This would be a big deal for crypto native banks like @custodiabank… https://t.co/rvmMPjMDsO
— Eleanor Terrett (@EleanorTerrett) March 10, 2025
Without these accounts, banks had to rely on intermediaries, hindering their ability to offer nationwide financial services. Trump’s forthcoming executive order seeks to eliminate these barriers, allowing crypto banks to operate on equal footing with traditional financial institutions.
Republicans Take Aim At Banking Bias
Interestingly, this executive order lines up with a broader Republican push to address what they see as unfair practices in the banking world. Specifically, the order mirrors the goals of Senator Tim Scott’s Financial Institutions Reputational Management (FIRM) Act.
BTCUSD trading at $81,409 on the daily chart: TradingView.com
That legislation seeks to stop regulators from denying banking access based on so-called “reputational risk.” In plain terms, this means regulators wouldn’t be able to block a financial institution simply because it operates in a controversial or misunderstood industry, like cryptocurrency.
End of Choke Point: #Trump Plans to Sign Executive Order Ending Biden-Era Crypto Debanking
Trump’s executive order will seek to roll back anti-crypto banking rules of the Biden administration and could target key Federal Reserve policies, sources said.
The order will likely…
— MartyParty (@martypartymusic) March 10, 2025
The goal here is to ensure that banking decisions are based on objective criteria rather than subjective evaluations of an industry’s image. This might mean fewer barriers to entry and more potential for growth in the cryptocurrency market.
Tackling ‘Operation Chokepoint 2.0’
Meanwhile, there’s been a lot of chatter in the cryptocurrency world about what some are calling “Operation Chokepoint 2.0.” The term refers to alleged efforts by regulators to cut crypto companies off from banking services. Whether or not such a campaign truly exists, the perception of bias has been enough to cause alarm across the industry.
By requiring the Federal Reserve to let crypto companies access its payment system, Trump’s executive order could immediately answers these issues. Head of the Presidential Working Group on Digital Assets, Bo Hines, thinks the industry can expect “something in short order here.”
For many in the crypto scene, this might be a long-needed path toward inclusion and fairness.
Featured image from Gemini Imagen, chart from TradingView
