U.S. President Donald Trump to Sign Executive Order on Crypto Policy and Banking Access
| Key Points: – President Donald Trump plans to sign an executive order allowing crypto banks access to the Federal Reserve’s payment system. – The administration is also establishing a Strategic Bitcoin Reserve and Digital Asset Stockpile using forfeited digital currencies. |
U.S. President Donald Trump is expected to sign a new executive order on cryptocurrency policy as early as this week, aiming to reshape regulatory frameworks and banking access for digital asset firms.
The order will likely reverse restrictive policies implemented under the Biden administration and provide clearer guidelines for stablecoins. It could have broad implications for the crypto industry, which has long faced regulatory hurdles in securing banking partnerships.
President Donald Trump’s Executive Order to Expand Crypto Banking Access
According to Decrypt, the executive order is anticipated to address Federal Reserve policies, potentially allowing crypto-focused banks access to the Fed’s payment system.
If enacted, this would mark a significant shift in the financial landscape, opening new opportunities for digital asset institutions to integrate with traditional banking services.
Additionally, the order is expected to clarify the legal status of stablecoins, affirming that these digital assets—typically pegged to the U.S. dollar—should not be classified as securities.
The latest measure would mark Trump’s third executive order on cryptocurrency since returning to office in January. His administration has taken an aggressive stance in supporting digital assets, contrasting with the previous administration’s crackdown on the industry over fraud and financial stability concerns.
Earlier this year, Trump established a Presidential Working Group on Digital Asset Markets, bringing together key cabinet officials to shape crypto policy. This is Trump’s first executive order related to cryptocurrency.
Regulatory Shift Sparks Debate in Crypto Industry
President Donald Trump aggressively courted the crypto community during his presidential campaign. Prior to that, former U.S. President Joe Biden led a crackdown on crypto that left the industry grappling with regulatory scrutiny.
Trump has also taken steps to establish a government-controlled cryptocurrency reserve. His second executive order on the subject created the Strategic Bitcoin Reserve and a broader Digital Asset Stockpile, consisting of forfeited digital currencies obtained through legal proceedings.
The directive instructs the Treasury and Commerce departments to develop acquisition strategies that are budget-neutral and do not impose additional costs on taxpayers.
White House AI and crypto advisor David Sacks likened the initiative to a “digital Fort Knox,” referencing the facility that holds a large portion of the nation’s gold reserves.
Market reaction to these developments has been mixed, with Bitcoin experiencing volatility following news of the executive order. At the time of writing, Bitcoin is still trading below $80,000.
Trump’s latest move has sparked debate among industry stakeholders. While some view it as a landmark shift toward legitimizing cryptocurrency in the U.S. financial system, critics argue that the administration has not been transparent about how these reserves will be managed.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
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