Trump’s Bold Move: Will the Fed Open Its Doors to Crypto?

According to recent reports, former U.S. President Donald Trump is preparing to sign an executive order that could transform the crypto industry’s access to the country’s banking system. This move aims to reverse the restrictions imposed during the Biden administration, which limited crypto-friendly banks from obtaining access to the Federal Reserve’s master accounts.

Is Trump Set to Reshape Crypto Banking?

The crypto industry has long voiced concerns over what it describes as “Operation Chokepoint 2.0″—a regulatory push that allegedly sought to cut off crypto firms from essential banking services. Trump’s administration appears ready to challenge these restrictions.

Bo Hines, Executive Director of the Presidential Digital Assets Working Group, hinted at imminent action, stating, “I believe the industry can expect movement on this front very soon.”

Under Biden, the Federal Reserve rejected access requests from crypto-focused banks such as Custodia, preventing them from integrating with the core financial infrastructure. Without access to master accounts, these banks were forced to rely on intermediaries, limiting their ability to provide nationwide financial services.

Thursday Could Be Pivotal

Reports suggest that legal advisors will meet on Thursday to assess potential challenges before Trump proceeds with signing the executive order. The objective is clear: to remove barriers preventing crypto firms from accessing fundamental financial services and place them on equal footing with traditional institutions.

While the Fed operates independently, Trump is reportedly preparing to exert significant pressure to push forward these changes. If successful, the order could mark a major shift in U.S. financial policy toward digital assets.

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Republican Push Against ‘Reputation Risk’ in Banking

The debate over crypto banking access extends beyond the White House. Last week, Senate Banking Committee Chairman Tim Scott introduced the Financial Integrity and Regulation Management (FIRM) Act. This proposed legislation would prevent banks from denying services based on “reputation risk,” a factor that some regulators have allegedly used to exclude specific industries, including crypto.

Scott argues that financial institutions should make decisions based on creditworthiness rather than regulatory pressure. His stance echoes concerns raised by industry leaders, such as Coinbase CEO Brian Armstrong and Anchorage CEO Nathan McCauley, who previously testified before Congress about the exclusion of crypto firms from the banking system.

Trump’s Ongoing Crypto Agenda

If signed, this executive order will be Trump’s third major crypto-related action since returning to office. In January, he established the Presidential Digital Asset Markets Task Force, and just last week, he signed an order to create a strategic Bitcoin reserve.

With momentum building, all eyes are now on Thursday’s legal review and whether Trump will officially sign the order. If enacted, the decision could mark a turning point in the U.S. crypto landscape, reshaping how digital asset firms interact with the banking sector.

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