According to an executive order signed on Tuesday by US President Donald Trump, the federal government must update its regulatory frameworks to integrate digital assets and innovative technologies directly into traditional financial services.
The administration aims to accelerate the deployment of fintech services across both state and private payment systems.
Auditing legacy frameworks
The new strategy focuses heavily on cutting through regulatory red tape for crypto firms and tech startups.
"It is therefore the policy of the United States to streamline regulatory processes, reduce unnecessary barriers to entry, and encourage collaboration between fintech firms, federally regulated financial institutions, and Federal financial regulators," the document states.
Trump has directed the heads of financial regulatory bodies to review their existing rulebooks over the next three months. Their mission is to flag any regulations or administrative documents that unduly impede fintech firms from forming strategic partnerships with traditional banks.
Following this audit, the White House has given regulators a six-month deadline to implement concrete measures to foster innovation.
Overhauling the Federal Reserve
The executive order also targets the Federal Reserve Board of Governors. Trump has demanded a comprehensive review of how the central bank grants access to payment accounts and services for uninsured depository institutions and non-bank financial companies.
Furthermore, the audit will scrutinize all 12 regional Federal Reserve banks to determine if they can act independently of the board when granting these payment accounts to businesses.
According to industry experts, this provision could provide a massive boost to crypto-native entities operating under Wyoming's Special Purpose Depository Institution (SPDI) framework, opening up direct access to central bank rails without traditional banking intermediaries.
Also Read:
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