Trump Executive Order: Integrating Fintech Innovations such as Digital Assets into Regulation

Source: The White House; Compiled by: Jinse Finance

On May 20th, Beijing time, US President Trump signed an executive order on Tuesday requiring the federal government and the Federal Reserve to review the existing regulatory framework to promote deeper integration of digital assets and fintech into traditional financial services and payment systems.

The executive order requires US financial regulators to review existing rules within the next three months and identify any provisions that "unreasonably hinder" fintech companies from cooperating with federally regulated financial institutions. Within six months, regulators must also take measures to encourage financial innovation.

The order specifically requires the Federal Reserve to reassess the eligibility of uninsured depository institutions and non-bank financial companies to access payment accounts and services. The document also requires the 12 regional Federal Reserve Banks to study whether they can independently open payment accounts to relevant institutions without relying on approval from the Federal Reserve Board. The following is the full text of Trump's executive order. Pursuant to the Presidential Power granted to me by the Constitution and laws of the United States, I hereby order: Section 1: Policy The United States is a global leader in financial innovation, and the rapid development of fintech companies is a significant driving force. These companies offer a variety of innovative financial products and services, broadening the public's access to financial services and creating development opportunities for all Americans. To support financial innovation, the federal government needs to revise existing regulatory rules to promote the integration of digital assets and innovative technologies into traditional financial services and payment systems. Simultaneously, it must abolish redundant, cumbersome, and inconsistent regulatory provisions and enforcement methods, breaking down industry entry barriers—barriers that have long favored traditional, established financial institutions and hindered healthy market competition. Based on this, the US national policy is established to: streamline regulatory processes, reduce unreasonable industry entry barriers, and promote multi-party collaboration between fintech companies, federally regulated financial institutions, and federal financial regulatory agencies. Section 2: Definitions The following definitions apply to this Executive Order: (a) Fintech companies: These are non-bank companies that rely on or develop various technological means to provide or facilitate the provision of financial products and services; encompassing various applications, digital and online technologies that can be used for channel integration, asset management, data processing, and other scenarios related to financial products and services. Their financial products and services include, but are not limited to: payment clearing, credit business, deposit taking, derivatives trading, investment management, brokerage services, securities underwriting and capital market business, asset custody and trust services, digital banking business, digital asset-related services, securities and commodity market business, and blockchain technology-related financial services. To clarify, the aforementioned scope of financial business also includes all business activities listed in subsections A through G of Section 4(k) 4.4 of the Bank Holding Company Act of 1956. (b) Banks: The definition is based on the relevant provisions of Section 3 of the Federal Deposit Insurance Act. (c) Credit Unions: The definition is based on the insured credit unions as defined in Section 101 of the Federal Credit Union Act. (d) Financial Products and Services: Refers to business activities permitted by federal and state laws for banks and credit unions, as well as financial business listed in Appendix A of Part 242 of Title 12 of the Compilation of Federal Regulations. (e) Federal financial regulatory agencies: including the Consumer Financial Protection Bureau, the Securities and Exchange Commission, the National Credit Union Administration, the Commodity Futures Trading Commission, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency. Section 3: Streamlining Regulatory Processes (a) Within 90 days of the effective date of this Executive Order, the heads of each federal financial regulatory agency must comprehensively review existing regulatory laws, guidelines, enforcement principles, and application processes, identify rule provisions that can be optimized and revised, and assist fintech companies in developing financial business innovation and participating in market competition, with a focus on supporting small and medium-sized emerging fintech entities. This review needs to identify two types of regulatory obstacles: First, regulatory provisions, guidance documents, administrative rulings, and letters of no objection that hinder cooperation between fintech companies and licensed federal financial institutions such as depository institutions, credit unions, securities brokers, investment advisors, and futures brokers. Second, rules that can be revised to optimize and simplify compliance application processes, streamlining approval procedures for eligible fintech companies applying for banking licenses, credit union licenses, deposit/stock insurance, and other federal operating qualifications. Process optimization must consider multiple principles: balancing the needs of innovative development, strictly adhering to the bottom line of financial security and stability, implementing the protection of financial consumer and investor rights, maintaining market order and ensuring financial stability, and improving the normalized regulatory mechanism. (b) Within 180 days of the effective date of this Executive Order, the heads of each federal financial regulatory agency, in conjunction with the results of the review in Section 1 of this Order and the Assistant to the President for Economic Policy, shall introduce supporting measures to facilitate the implementation of financial innovation. Section 4: Access to Federal Reserve Services (a) The Federal Reserve Board is required to simultaneously implement all reform measures in Section 3 of this Executive Order. (b) The Federal Reserve Board is required to comprehensively review and analyze the relevant laws, regulations, and policy framework to clarify the access rules for non-participating depository institutions, non-bank financial institutions (including market entities involved in digital assets and various new financial businesses, collectively referred to as applicable entities), and direct participants in real-time payment networks to apply for the opening of Federal Reserve Bank payment accounts and the use of Federal Reserve payment services. Within 120 days of the effective date of this executive order, the Federal Reserve shall, through the Assistant to the President for Economic Policy, submit a special assessment report to the President, outlining the research findings, access plans, and policy recommendations. The assessment shall include: (i) the Federal Reserve's legal authority, in accordance with the Federal Reserve Act and other current federal laws, to directly open Reserve Bank payment accounts and payment services to applicable entities; (ii) feasible implementation plans for expanding service access channels within the scope permitted by law, relying on compliance and risk control mechanisms; and (iii) legal barriers hindering direct access for market entities, in-depth analysis of these barriers, and legislative and regulatory optimization paths that both open access and prevent payment system risks, maintaining financial stability and U.S. economic security. (iv) Do the twelve regional Federal Reserve Banks across the United States have the legal authority to independently approve and decide whether to open payment accounts and payment services to the public? If the regional Federal Reserves have independent decision-making power, what unified regulatory policies has the Federal Reserve headquarters formulated or plans to introduce to ensure that all applicable entities, regardless of which regional Federal Reserve they submit their applications to, are subject to the same review standards? (c) If the Federal Reserve, based on the assessment in Section 2 of this section, determines that current law allows applicable entities to directly access the payment accounts and payment services of the Federal Reserve Banks, it must establish a transparent and open access application process and complete the approval decision within 90 days of receiving complete application materials. Section 5: General Provisions (a) Nothing in this Executive Order shall be construed as: (i) reducing the statutory powers of federal executive departments, agencies, and their heads; (ii) interfering with the statutory functions of the Director of the Office of Management and Budget in matters of budgetary affairs, administrative affairs, and legislative proposals. (b) This Executive Order shall be implemented strictly in accordance with applicable laws and shall be funded only by funds allocated by Congress. (c) This Executive Order does not create any substantive or procedural rights that can be asserted under common law or equity against the U.S. federal government, its agencies, public officials, or related entities, nor does it grant any related statutory rights to any entity. (d) The costs of formally publishing this Executive Order will be borne entirely by the U.S. Treasury Department. Donald J. Trump The White House May 19, 2026