According to Fox Business reporter Eleanor Terrett, the Trump administration is preparing to sign an executive order to reverse restrictions limiting crypto firms’ access to banking services.
The order is expected to remove Federal Reserve policies that have blocked cryptocurrency-focused banks from obtaining master accounts.
Terrett stated that the executive order will target regulations that have hindered institutions like Custodia Bank and Caitlin Long’s venture. Due to difficulties securing financial services, these companies have been involved in legal battles against the Federal Reserve.
The order is set to counteract policies seen as a barrier for crypto firms seeking fair banking access.
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Executive Order to Tackle Anti-Crypto Banking Policies
Crypto analyst Marty Party reported that the executive order will focus on eliminating banking policies linked to Operation Chokepoint 2.0. This initiative has been criticized for restricting cryptocurrency businesses.
It has been compared to the original Operation Chokepoint from the Obama administration, which targeted specific industries, including payday lenders and firearms dealers.
Party emphasized that the executive order signals a shift from restrictive measures enforced during the Biden administration. He noted that removing these barriers could create a more favorable environment for digital asset firms and encourage financial inclusion within the sector.
Executive Director of the White House’s Presidential Working Group on Digital Assets, Bo Hines, confirmed that the administration is working to end practices linked to Operation Chokepoint 2.0. Hines stated that the executive order is in the works and is expected to be signed soon, though he did not provide specific details.
Impact on Crypto Banking and Regulatory Landscape
The crypto sector has difficulty securing conventional bank services because of government limitations. Numerous organizations state that federal limitations create an unfair barrier to their financial operations in the banking sector.
The upcoming executive order has the potential to establish precise crypto sector business operations regulations. The intensified conflicts between crypto institutions and regulatory bodies occur because both parties face restrictions on banking transactions.
Custodia Bank has demonstrated through legal action at the Federal Reserve that the company fulfills all banking requirements. Financial operations of such firms could see fundamental changes through the new executive order, which defines monetary regulations.
According to industry analysts, the modifications in federal policy will affect the cryptocurrency market for a prolonged period. Establishing more effortless banking possibilities for crypto firms should boost crypto investments while providing needed regulatory definitions, which will drive wider digital asset adoption.
Industry officials at the White House stated they consider the executive order signing a priority while keeping the specific timing undisclosed. The crypto sector continues waiting to learn detailed implementation guidelines for policy changes and their expected effects on the financial system.
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