The president signed an executive order on May 19, 2026, directing federal financial regulators to review existing regulations, guidance, and application processes for financial technology companies. The document, released May 22, 2026, states it is the policy of the United States to streamline regulatory processes and encourage collaboration between these firms and federally regulated financial institutions.
According to the order’s policy section, the federal government must update regulations to allow the integration of digital assets and innovative technology into traditional financial services. The order says the government must also remove overly burdensome regulations that primarily benefit incumbent financial firms and form barriers to entry.
To carry out these goals, the order directs the heads of federal financial regulators to conduct a review within 90 days. These regulators include the Consumer Financial Protection Bureau, the Securities and Exchange Commission, the National Credit Union Administration, the Commodity Futures Trading Commission, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency.
During the review, the regulators must identify regulations and documents that unduly impede financial technology firms from partnering with regulated institutions. They must also identify items that could be amended to streamline applications for eligible technology firms seeking bank charters, credit union charters, or federal licenses. The order directs the regulators to balance innovation interests with consumer protection, market integrity, and financial stability.
Within 180 days of the order, the heads of each federal financial regulator must take steps to encourage innovation as a result of their reviews. The order requires them to consult with the assistant to the president for economic policy.
The order requests the Board of Governors of the Federal Reserve System to evaluate the legal framework governing access to Reserve Bank payment accounts for non-bank financial companies. The board is asked to submit a report within 120 days detailing its legal authority to extend direct access, potential legal impediments, and options for expansion. The report must also assess whether the 12 individual Federal Reserve banks have the authority to grant or deny access independently.
If the Federal Reserve determines that current law permits extending direct access, the order requests the board to establish transparent application procedures. The board would then be asked to make determinations on complete applications within 90 days. The Treasury Department will bear the costs for publication of the order.