President Donald Trump signed an executive order Tuesday, calling on the Federal Reserve to review rules that may be stifling financial innovation, including expanding fintech access to Fed payment rails.
Trump Orders Fed To Examine Master Account Access
The order asks the Fed to join other regulators in reviewing policies that could support fintech growth.
It also calls on the Fed to examine its approach to granting access to payment accounts and services, and to consider options for expanding such access to fintechs and other non-bank firms.
People often compare Fed master accounts to bank accounts for banks because they let holders move funds directly through the Federal Reserve’s payment system.
Access to master accounts by non-traditional financial firms has drawn increasing attention at the Fed as several fintechs have applied or plan to seek access.