Trump order puts Kraken, Ripple, Coinbase and Circle in line for Fed payment rails

A notable development has hit the crypto markets. President Donald Trump has pushed the Federal Reserve to revisit one of the most contested gateways in US finance, escalating a fight over whether crypto and fintech firms should be allowed to connect directly to the central bank’s payment system. On May 19, Trump signed an executive order directing the Fed to evaluate its policies on granting payment-account access to non-bank financial companies, including firms involved in digital assets, blockchain services, and other financial technology businesses. The order, titled “Integrating Financial Technology Innovation into Regulatory Frameworks,” asks federal agencies to identify rules and supervisory practices that may place unnecessary limits on financial innovation.

The directive does not immediately grant crypto firms access to the Fed’s payment rails. However, it gives the central bank a clear mandate to review whether existing law permits broader access and, if so, how the application process should work. The outcome could determine whether companies such as Kraken, Ripple, Coinbase, Circle, Anchorage, Wise, Paxos, and BitGo can reduce their reliance on intermediary banks and move closer to the infrastructure that handles high-value dollar settlement.

Market Dynamics

Related Reading Crypto to enter the US banking system through a backdoor, not through regulation Apr 18, 2026 Andjela Radmilac Trump order turns master accounts into a White House priority At the center of the order is the Fed master account, a payment account that allows eligible institutions to access Federal Reserve payment services directly. Those services include Fedwire, the high-value payment system used by banks and financial institutions to move dollars across the US financial system. Under current Fed rules, access is generally limited to depository institutions.

That has led some crypto firms to seek special-purpose bank or national trust bank charters to qualify for direct access. Trump’s order asks the Fed to conduct a comprehensive review of its framework for granting access to Reserve Bank payment accounts and payment services. It also directs the central bank to clarify whether the 12 regional Federal Reserve banks have the legal authority to independently approve or deny applications.

That question has become more urgent after the Kansas City Fed approved a limited-purpose payment account for Payward, Kraken's parent company, in March. The approval gave the crypto exchange’s banking unit a restricted connection to the Fed’s payment system, creating a precedent for other digital asset companies seeking similar access. The order also directs regulators to examine broader barriers facing fintech firms, including licensing practices, third-party risk-management guidance, and policies that may limit partnerships between banks and technology companies.

Market Impact

Cynthia Lummis framed the directive as a correction to years of restricted access for financial technology companies. She said fintech firms had long been shut out while legacy institutions benefited from privileged access, adding that the administration’s order was aimed at creating a more level playing field, stronger competition and lower payment costs for consumers. Coinbase Chief Legal Officer Paul Grewal also supported the move, saying the White House had acknowledged that outdated rules on payment access and third-party risk management favored incumbents over innovators.

He described the existing framework as protectionist and said regulators should update it. Those comments capture the crypto industry’s argument that access to payments has become a competitive bottleneck. Firms that cannot connect directly to Fed payment systems must route activity through banks, which can increase costs, slow settlement, and expose companies to bank-specific risk.

Kraken gives crypto firms a working model Kraken’s approval gives the industry a practical example of how expanded access could work. In March, the Kansas City Fed granted Kraken Financial a limited-purpose account that allows access to core payment rails used for high-value dollar settlement. The account could help the exchange process institutional deposits and withdrawals more efficiently, particularly for clients moving large balances between trading venues, custodians, and banking partners.

Crypto markets are watching this development closely as investors weigh its potential impact on prices.