White House pushes fintech integration into US banking framework
Washington is increasing pressure on regulators to modernise financial oversight as fintech and digital asset firms seek greater integration into mainstream banking.
US President Donald Trump has signed an executive order directing federal financial regulators to review rules and supervisory practices that may be limiting fintech and digital asset firms’ access to traditional financial services and payment infrastructure.
The order says federal regulators should identify regulations, guidance, supervisory practices and application processes that could be updated to support innovation, competition and fintech partnerships with federally regulated financial institutions.
Agencies covered by the review include the Securities and Exchange Commission, the Commodity Futures Trading Commission, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, the National Credit Union Administration and the Consumer Financial Protection Bureau.
Within 90 days, regulators must review existing rules and processes affecting fintech firms, particularly small and emerging companies. The review will examine barriers to partnerships with banks, credit unions, broker-dealers, investment advisers and other regulated institutions, as well as application processes for bank charters, deposit insurance, licences, registrations and authorisations.
The order also asks the Federal Reserve Board to evaluate whether uninsured depository institutions and non-bank financial companies, including firms involved in digital assets and other novel financial activities, could receive broader access to Reserve Bank payment accounts and payment services. The review will also cover companies participating directly in real-time payment networks.
The Federal Reserve is asked to assess legal authority, financial stability risks, legal obstacles and possible options for expanding such access where permitted by law. It must also examine whether the 12 regional Federal Reserve Banks apply consistent standards when granting or denying access to Reserve Bank accounts and payment services.
If the Federal Reserve concludes that existing law allows direct access for covered firms, the order asks it to establish transparent application procedures and make decisions on complete applications within 90 days.
The order comes amid continued pressure from fintech and digital asset companies seeking clearer pathways into core financial infrastructure. The White House said the policy aims to reduce unnecessary barriers to entry while balancing innovation with safety and soundness, consumer and investor protection, market integrity and financial stability.
Why does it matter?
The order could reshape how fintech and digital asset firms interact with the US banking system, but only if regulators conclude that broader access is legally and prudentially viable. Its significance lies in putting bank partnerships, licensing processes and Federal Reserve payment access under formal review, potentially opening new pathways for non-bank financial companies while raising questions about oversight, financial stability and the boundaries between banks and fintech firms.
Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our chatbot!