Executive Order Directs Regulators to Streamline Fintech Access to Financial Services
On May 19, 2026, President Trump signed an executive order titled "Integrating Financial Technology Innovation into Regulatory Frameworks" (the "Order") to direct federal financial regulators to reduce barriers to entry for fintech firms and facilitate partnerships between fintech firms and federally regulated financial institutions.
The Order seeks to reduce barriers to entry and encourage collaboration between fintech firms and traditional financial institutions. The Order defines "fintech firm" to include any non-bank company that uses or develops technology to offer or support financial products or services, including payment processing, digital asset services, and blockchain-based services. The Order also requests the Federal Reserve Board ("FRB") evaluate expanding fintech access to Reserve Bank payment accounts and services.
Key Provisions of the Executive Order
- Regulatory Review. Within 90 days, federal financial regulators must review existing regulations, guidance, and application processes to identify provisions that could be updated to facilitate innovation and competition.
- Fintech-Bank Partnerships. The review must identify provisions that impede fintech firms from partnering with federally regulated institutions, such as insured depository institutions, credit unions, and broker-dealers.
- Chartering and Licensing. Regulators must identify ways to streamline application processes for fintech firms seeking bank charters, deposit or share insurance, and other federal licenses, while balancing safety and soundness, consumer protection, and market integrity.
- Implementation. Within 180 days, each regulator must take concrete steps to encourage innovation based on the results of its review, in consultation with the Assistant to the President for Economic Policy.
- Federal Reserve Access. The Order requests the FRB evaluate the legal, regulatory, and policy framework governing access to Reserve Bank payment accounts and services for fintech firms. The FRB must submit a report within 120 days and establish transparent application procedures with a 90-day decision timeline.
The Order comes as the Senate Banking Committee recently advanced the Digital Asset Market Clarity Act (or the CLARITY Act), the digital asset market structure bill. Federal regulators have also already allowed more institutional access to fintech firms: For example, the Office of the Comptroller of the Currency granted conditional approval for the national trust bank charter applications of several stablecoin issuers and a digital asset bank has gained access to a Federal Reserve master account (although the FRB recently proposed creating limited accounts for future applicants of payment services).
The Order does not create enforceable rights or benefits but signals a clear policy direction toward integrating fintech firms into the regulated financial system.
