U.S. President Donald Trump has signed an executive order directing the Federal Reserve and other regulators to review rules that may be limiting financial-technology firms’ access to central bank payment accounts and services. The order instructs the Fed to work with other agencies to reassess eligibility criteria for payment accounts and consider expanding access for fintech and non-bank entities, alongside broader efforts to update regulations that may be constraining innovation. A companion order focuses on curbing illicit financial activity by strengthening Bank Secrecy Act rules, customer due diligence, and guidance to banks on red flags such as opaque beneficial ownership and payroll tax fraud. Together, the measures aim to modernize U.S. payment infrastructure, potentially opening Fed payment rails to more digital-native providers while tightening oversight of financial crime risks in an increasingly digital banking and payments ecosystem.

Key Takeaways:

• A new executive order instructs the Federal Reserve to re-examine how fintech and other non-bank firms can gain access to its payment accounts and services.
• The directive requires coordination with other regulators to identify and remove regulatory obstacles that may be holding back financial-technology innovation.
• A parallel order targets illicit financial activity, telling the Treasury to update Bank Secrecy Act regulations and issue advisories on suspicious patterns such as payroll tax fraud and hidden account ownership.
• Existing know-your-customer rules will be reviewed to allow institutions to request additional information when needed, without mandating citizenship or immigration checks.
• The White House frames both orders as part of a broader effort to foster collaboration between banks, fintech companies, and regulators while keeping financial crime controls aligned with digital-era risks.

Why It Matters:

• The Fed’s criteria for granting access to its payment systems are central to how far non-bank digital providers can participate directly in core U.S. payment infrastructure.
• Expanded access could lower costs and speed up settlement for digital-first payment firms, stablecoin platforms, and other fintech players building on real-time rails.
• Updating anti–money laundering and Bank Secrecy Act rules for a more digital environment reflects growing concern that legacy compliance frameworks lag behind new payment and asset structures.
• The combination of broader access and tighter oversight illustrates how policymakers are trying to balance innovation with systemic and consumer protection in digital payments.
• Outcomes from these reviews will shape whether the next generation of digital payment services is primarily bank-led, fintech-led, or based on hybrid models that connect new entrants more directly to central bank infrastructure.