Wyoming Crypto Banks Could Gain Access to Federal Reserve Accounts
Special purpose depository institutions in Wyoming, which are centered around cryptocurrency, may soon gain access to something they have long been denied: a Federal Reserve master account. A new executive order signed by U.S. President Donald Trump opens the possibility, alongside a broader effort to integrate crypto and financial technology companies into the U.S. banking system.
Federal Reserve Role Under Review
The order directs the Federal Reserve’s Board of Governors to assess whether uninsured depository institutions and non-bank financial companies dealing in digital assets should have direct access to Reserve Bank payment accounts and services. It also tasks the Fed with examining legal obstacles to such access and, if current law permits, establishing clear application procedures. Decisions on completed applications would be required within 90 days.
This directive is part of a larger policy initiative. Trump signed the order on Monday, instructing federal regulators across multiple agencies to update their rules and facilitate collaboration between crypto and fintech firms and traditional financial institutions. The order sets a government-wide objective of reducing unnecessary barriers to entry and promoting cooperation between technology-driven financial companies and federally regulated banks.
Agencies Given 90 Days to Comply
The Securities and Exchange Commission, Commodity Futures Trading Commission, Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corp are among the agencies required to take action. Each agency has been instructed to review its current supervisory practices within 90 days, with a focus on policies that may prevent fintech firms from partnering with federally regulated institutions.
Regulators are also asked to explore ways to streamline the application process for fintech companies seeking bank charters, deposit insurance, and other federal approvals. The order emphasizes that the review should prioritize consumer protection, market integrity, and financial stability.
The order defines fintech broadly, encompassing companies providing services related to digital assets, blockchain infrastructure, payment processing, custody, lending, brokerage, and securities market operations.
Broader Policy Shift
This move contrasts with calls from Sen. Elizabeth Warren, who has advocated for stricter limitations on banking access for crypto companies. Trump’s order takes the opposite approach.
Of note, on the same day the order was signed, Trump’s media company, Truth Social, withdrew its SEC filings for a Bitcoin exchange-traded fund, a combined Bitcoin-Ethereum ETF, and a crypto blue chip ETF. This action was viewed as incongruous with the administration’s broader push to integrate crypto into the mainstream financial system.
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