President Donald Trump has signed an executive order directing the Federal Reserve to explore expanding access to its payment rails for fintech companies and non-bank financial institutions.
The executive order aims to streamline regulations and promote greater financial innovation and collaboration between fintechs, traditional banks, and regulators.
It specifically asks the Fed to review legal, regulatory, and policy frameworks governing access to Reserve Bank payment accounts and services.
Under the directive, the Federal Reserve must evaluate its existing legal authorities and present clear options for broadening access to uninsured depository institutions and non-bank firms.
The Fed had already begun exploring a “skinny” master account model last year to provide basic payment services to fintechs without full banking charters.
Crypto firm Kraken recently became the first digital asset bank to secure a master account, while companies like Wise and Ripple are also seeking similar access.
The executive order further instructs the Fed and other regulators to update existing regulations, guidance, and supervisory practices to reduce barriers and foster greater competition and innovation in the financial sector.
See What’s Next in Tech With the Fast Forward Newsletter
Tweets From @varindiamag
Nothing to see here - yet
When they Tweet, their Tweets will show up here.
