U.S. President Donald Trump has taken steps to promote financial innovation in the country. On May 19, he signed an executive order calling on regulators to review rules that may be stifling growth in the fintech industry. The order specifically requests that the Federal Reserve examine its approach to granting access to payment accounts and services.
The Fed's current system for granting master accounts has been a topic of interest among fintech companies. These accounts allow holders to move funds directly through the Fed's payment system, much like bank accounts for banks. Several companies, including crypto exchange Kraken and money transfer company Wise, have applied or plan to seek access.
The order is seen as a positive step for fintech firms, which often face regulatory hurdles in accessing traditional banking systems. By expanding access to payment accounts and services, the Fed can help foster innovation and growth in the industry.