BREAKING BARRIERS FOR FINANCIAL TECHNOLOGY INNOVATION AND COMPETITION: President Donald J. Trump has signed an Executive Order aimed at simplifying regulations to foster financial innovation and strengthen partnerships between financial technology (fintech) companies, federally regulated financial institutions, and Federal financial regulators.
- This Executive Order mandates a review by Federal financial regulators of existing regulations, guidance, supervisory practices, and application processes to identify areas for updating that could support innovation and enhance competition in delivering financial services, all while ensuring safety and soundness.
- The Order instructs regulators, based on these reviews, to take action to promote innovation and growth among fintech companies and federally regulated institutions of all sizes.
- The Federal Reserve is also asked to conduct a similar regulatory review and assess the legal, regulatory, and policy frameworks concerning access to Reserve Bank payment accounts and payment services by uninsured depository institutions and non-bank financial companies.
- The Federal Reserve is requested to report its findings on several aspects, including:
- The legal authority for the Federal Reserve to provide access to payment accounts and services for uninsured depositories and non-bank fintechs;
- Potential options for expanding such access, provided that appropriate risk management requirements are met;
- Legal barriers that prevent direct access, along with possible legislative or regulatory solutions to enable access while managing risks; and
- The policies and authorities at both the Reserve Bank and Federal Reserve Board of Governors levels that govern access to Reserve Bank payment accounts and services.
PROMOTING FINANCIAL INNOVATION AND REDUCING REGULATORY PROTECTIONS FOR ESTABLISHED COMPANIES: President Trump is working to position the United States as a global leader in financial innovation by eliminating outdated regulatory frameworks that are not suited to the digital age.
- Fintech companies offer a variety of innovative services, from banking and payment processing to brokerage, securities, and custodial services, providing a wide range of solutions that improve cost-effective and efficient access to financial markets and create economic opportunities for all Americans.
- The Federal government needs to update obsolete regulations to allow the integration of digital assets and other new financial technologies into traditional financial services and payment systems, enhancing Americans’ ability to benefit from these services.
- Current rules governing access to different payment services and extensive requirements related to financial institutions’ third-party risk management tend to favor established companies at the expense of innovators.
- Other financial regulations, guidance, and policies are remnants of a time when financial services were mainly offered in brick-and-mortar settings and should be revised to reflect the modern digital economy and the technological benefits available to all Americans, including reduced costs of financial services.
- This Order is designed to establish the United States as a global leader in financial technology innovation, aiming to reduce costs and increase economic opportunities for hardworking Americans.
LEADING THE WORLD IN FINANCIAL INNOVATION: President Trump is positioning the United States as a frontrunner in financial and other cutting-edge technologies by eliminating bureaucratic obstacles and prioritizing innovation and global competitiveness—sensible measures that will lower costs and enhance economic opportunities for all Americans.
- In his first week in office, President Trump signed an Executive Order to drive innovation and economic opportunity, solidifying the United States’ status as a global leader in the digital asset economy and establishing regulatory clarity for digital financial technology.
- In March 2025, President Trump signed an Executive Order to create a Strategic Bitcoin Reserve and a U.S. Digital Asset Stockpile, positioning the U.S. as a global leader in government digital asset strategy.
- In March 2025, President Trump signed an Executive Order to modernize the government’s money handling, transitioning from traditional paper-based payments to fast and secure electronic transactions.
- In December 2025, President Trump signed a Presidential Memorandum to ensure America’s leadership in 6G development, cementing U.S. dominance and global competitiveness in cutting-edge technologies.
