US President Donald Trump continues to take conciliatory steps towards the cryptocurrency sector. In this regard, President Trump instructed regulators to examine the inclusion of cryptocurrencies in payment systems.
US President Donald Trump has instructed the government and the Federal Reserve to review the access of cryptocurrency companies to payment systems.
According to The Block, Trump yesterday signed an executive order titled “Integrating Financial Technology Innovation into Regulatory Frameworks,” urging the federal government to eliminate policies that could be overly burdensome.
With the executive order he signed on May 19, Trump instructed the federal government to update its regulatory system to allow the integration of cryptocurrencies and innovative technologies into existing financial services and payment systems.
Under this order, financial regulators will review existing rules over the next three months and identify any regulations or documents that unfairly prevent fintech companies from partnering with federal regulators.
Specifically, the order requested the Fed to thoroughly evaluate its regulatory framework governing access to Reserve Bank payment accounts and payment services, and to explore options for expanding this access to fintech and cryptocurrency companies.
President Trump also ordered agencies to use this analysis to take measures to encourage innovation over the next six months. These measures include a review of how uninsured deposit institutions and non-bank financial companies can access payment accounts and services.
This issue has been debated for a long time. However, granting cryptocurrency companies access to FED master accounts has become the subject of heated discussion, particularly after the Kansas City Fed approved what it called a “limited purpose account” for Payward, the parent company of the crypto exchange Kraken, in March.
As you may recall, last March, Kraken, the second-largest cryptocurrency exchange in the US, achieved something no other cryptocurrency company had done before by gaining access to the FED.
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*This is not investment advice.
