U.S. President Donald Trump signed an executive order aimed at modernizing FinTech sector regulation and integrating digital assets into the traditional financial system. The document provides for a review of existing requirements for FinTech companies, simplified access to licensing, and an assessment of the possibility of connecting non-bank players to the Fed’s payment infrastructure.
According to the executive order dated May 19, 2026, U.S. federal financial regulators must, within 90 days, conduct an audit of existing regulations, supervisory practices, and licensing procedures that may restrict the development of innovative financial services. This includes, among other things, the regulation of partnerships between FinTech companies and banks, credit unions, brokers, and other licensed financial institutions.
The document reinforces the Donald Trump administration’s policy of reducing excessive and fragmented regulatory barriers that primarily protect the interests of large incumbent market participants. The order emphasizes that the initiative is intended to preserve the country’s leadership in financial innovation amid the rapid growth of companies operating in digital payments, online banking, investment services, and blockchain solutions.
Under the document, FinTech companies are defined as non-bank organizations that provide or support financial services using technology, including payment and blockchain services. These services include:
- lending;
- deposit placement;
- brokerage services;
- investment management;
- custody and transactions involving digital assets.
A separate section of the document is dedicated to non-bank financial companies’ access to the Federal Reserve System infrastructure. The Federal Reserve Board is required, within 120 days, to prepare a report assessing the legal and regulatory feasibility of granting non-bank organizations direct access to central bank accounts and Federal Reserve payment services, including instant payment systems.
The review will cover companies working with digital assets and other “novel financial activities.” The Federal Reserve was also instructed to assess whether regional reserve banks have independent authority to approve or reject applications for access to payment infrastructure and how consistently such decisions are applied.
If the Fed concludes that current legislation allows direct access for non-bank companies to payment infrastructure, the regulator is advised to implement transparent application review procedures and issue decisions within 90 days after receiving a complete set of documents.
Moreover, federal financial regulators are required, within 180 days after completing the review, to propose measures aimed at encouraging innovation and increasing competition in the financial services market. The document specifically notes that the reforms must take into account financial stability, consumer and investor protection, and the resilience of the U.S. payment system.
An updated version of the CLARITY Act, a bill regulating the cryptocurrency market, was recently introduced in the United States, sparking disagreements between crypto companies and participants in the traditional financial system.
