On May 19, the White House issued an executive order directing federal financial regulators to streamline regulations and promote collaboration between federal financial regulators, federally regulated financial institutions, and “fintech firms” — defined as “non-bank compan[ies] that use[] or develop[] technological means to offer or support the offering of financial products or services,” including payment processing, lending, deposit-taking, investment management, and digital asset-related services, among others. The order directs the CFPB, the SEC, the NCUA, the CFTC, the FDIC, and the OCC to: (i) review existing regulations, guidance, supervisory practices, and application processes within 90 days to identify those that “unduly impede” fintech firms from partnering with federally regulated institutions or that could be streamlined for fintech firms seeking bank charters, credit union charters, deposit or share insurance, or other federal licenses, registrations, and authorizations, while balancing innovation with safety and soundness, consumer and investor protection, market integrity, financial stability, and oversight; and (ii) take steps within 180 days to encourage innovation based on the results.

The order also asks the Fed’s Board of Governors to conduct the same regulatory review and to: (i) evaluate the legal, regulatory and policy frameworks that govern access to Reserve Bank payment accounts and services for uninsured depository institutions and non-bank financial companies, including digital asset firms, those engaged in other novel financial activities, and direct participants in real-time payment networks; (ii) submit a report to the president within 120 days on its legal authority to extend direct access, options for broadening such access, impediments under current law, and whether individual Reserve Banks may act independently of the Board of Governors in granting or denying access; and (iii) if existing law permits direct access, establish transparent application procedures and make determinations on complete applications within 90 days.

As previously covered by InfoBytes, the Kansas City Fed approved the first-ever limited-purpose account for a digital asset bank in March. The executive order also follows a May 13 decision in the 2nd Circuit (previously covered by InfoBytes here) — and, prior to that, a November 2025 10th Circuit decision (covered here) — affirming Reserve Banks’ discretion over master account access.