Trump Prepares Executive Order Allowing Crypto Banks Access to Federal Reserve Master Accounts

# Trump Administration Prepares to Rescind Fed's Cryptocurrency Bank Account Restrictions The Trump administration is reportedly preparing an executive order to rescind policies that have restricted cryptocurrency banks' access to Federal Reserve (Fed) master accounts. Fox News journalist Eleanor Terrett shared this information on X on the 10th (local time). The move could significantly impact cryptocurrency-focused bank Custodia and its founder Caitlin Long, who are currently embroiled in legal disputes with the Fed. A master account is essential for a bank as it allows direct transactions with the Fed and access to the payment system. However, during the Biden administration, the Fed refused to grant these accounts to cryptocurrency-specific banks like Custodia. Custodia subsequently filed a lawsuit against the Fed, but the court ruled that the Fed has discretionary power in granting master accounts. President Trump has recently announced several measures to foster the digital asset industry. In January, an executive order titled “Strengthening American Leadership in Digital Financial Technologies” was issued, which included a prohibition on issuing central bank digital currency (CBDC) and the establishment of a task force to propose a federal regulatory framework for digital assets. Additionally, on March 6, he signed an executive order to establish a "Strategic Bitcoin Reserve" and a broader "United States Digital Asset Reserve" including various digital assets. The cryptocurrency industry has welcomed these policy shifts, particularly the potential rescinding of master account access restrictions, which is expected to promote the operation and growth of cryptocurrency-focused banks. However, concerns about the Fed's independence and the stability of the existing financial system are also being raised, making the discussions during the policy implementation process noteworthy.