The White House issued an executive order on May 19, 2026, directing US financial regulators and the Federal Reserve to reassess how fintech and crypto-linked firms gain access to core payment infrastructure. The order places direct pressure on long-standing eligibility rules that have limited non-bank companies from connecting to Federal Reserve payment systems.
Titled “Integrating financial technology innovation into regulatory frameworks,” the directive sets a structured timeline for review rather than immediate policy change. It asks regulators to evaluate existing frameworks, identify barriers to entry, and publish clearer procedures for applications tied to Reserve Bank accounts and services.
The move targets a long-running access issue in US financial markets: whether non-bank firms can connect directly to Fed payment rails without relying on intermediary banks.
Federal Reserve asked to review master account rules
At the center of the order is the Federal Reserve’s master account system. These accounts sit inside the US payment backbone and allow institutions to settle transactions directly on Fed rails.
Under current rules, access is typically limited to insured depository institutions. Crypto firms and fintech companies often fall outside that perimeter and rely on partner banks for settlement.
The order requests the Federal Reserve to evaluate whether uninsured depository institutions and non-bank financial companies could gain access under updated frameworks. It also asks the Fed to determine whether its 12 regional Federal Reserve Banks have independent authority to approve or deny such access.
The White House also sets a 120-day deadline for a report outlining legal constraints, policy options, and possible reforms. A separate 90-day timeline applies to regulators reviewing their broader licensing and supervision processes.
“Update regulations” to support digital assets
The policy section of the order frames fintech firms as part of a broader financial modernization strategy. It defines them as non-bank companies that provide services such as payments, lending, brokerage, custodial services, and blockchain-based systems.
It states:
“To foster this financial innovation, the Federal Government must update regulations to allow integration of digital assets and innovative technology into traditional financial services and payment systems.”
The order also calls for reducing fragmented supervisory practices that limit competition. It instructs federal agencies to identify rules that may prevent fintech firms from partnering with banks, credit unions, or other regulated financial institutions.
Ripple, Anchorage, and Wise remain key reference cases
The debate over Fed access has already produced several test cases. Ripple, Anchorage Digital, and Wise are frequently cited as firms seeking or exploring direct access to Fed payment infrastructure.
Ripple operates within a broader push to integrate blockchain-based settlement with traditional banking systems. Anchorage Digital already functions under a federal banking charter and serves institutional clients in crypto custody. Wise operates large-scale cross-border payment flows and has repeatedly argued for direct access to US payment rails to reduce correspondent banking costs.
The order does not grant access to any specific firm. It focuses on process, timelines, and eligibility criteria rather than approvals.
Long-standing friction over “master accounts”
The master account debate has been active for several years. Crypto-related firms have repeatedly faced extended review timelines or denials when applying for access.
A notable reference point is Custodia Bank, which applied for a master account in 2020 and later received a denial from the Federal Reserve Bank of Kansas City. That case became a central example in legal discussions over how far the Fed can go in restricting access under its risk-based framework.
The Fed’s 2022 Account Access Guidelines introduced a tiered system that places crypto-linked and uninsured entities in the strictest review category. That category does not include fixed deadlines, which has allowed applications to remain unresolved for extended periods.
The new executive order does not remove those tiers. It introduces time-bound review expectations and requires written processes.
Banking industry tensions over access expansion
The issue has drawn resistance from traditional banking groups. Industry associations have previously warned that expanding Fed access could create regulatory gaps between insured banks and non-bank firms.
Those concerns focus on system risk, compliance standards, and financial stability. At the same time, fintech firms argue that reliance on intermediary banks increases costs and slows settlement times in cross-border and digital asset markets.
The executive order places both perspectives inside a formal review process rather than resolving them directly.
FTC adds pressure on payment processors
On the same day as the order, the Federal Trade Commission sent warning letters to major payment processors including PayPal, Visa, Mastercard, and Stripe.
The letters raise concerns about potential unfair practices if firms restrict services to compliant crypto businesses without documented risk-based reasons. This step targets what some in the industry describe as informal “debanking” pressure that has affected crypto companies since 2022.
Unlike the Federal Reserve directive, the FTC action focuses on downstream payment networks rather than core settlement infrastructure.
What changes inside the next 120 days
The executive order creates a structured timeline for regulatory review rather than immediate policy change. The key milestones include:
- A 90-day review of regulatory barriers across federal agencies
- A 120-day Fed report on payment account access rules
- A potential redesign of application procedures for master accounts
The order does not guarantee access for any firm. It also does not override the Federal Reserve Act or existing supervisory guidelines.
The practical outcome depends on how the Fed interprets its authority during the review period. If revised procedures introduce clear timelines and decision rules, firms such as Ripple and Anchorage Digital could move closer to direct access. If the Fed maintains existing discretionary standards, the system remains largely unchanged despite the new federal directive.
Roman Zaika
Disclaimer: All materials on this site are for informational purposes only. None of the material should be interpreted as investment advice. Please note that, despite the nature of much of the material created and hosted on this website, HODL FM operates as a media and informational platform, not a provider of financial advisory services. The opinions of authors and other contributors are their own and should not be taken as financial advice. If you require advice, HODL FM strongly recommends contacting a qualified industry professional.
