Emma Nelson 
President Donald Trump is preparing to sign an executive order that would aim to reverse banking restrictions on cryptocurrency firms that were introduced during the Biden administration. This anticipated executive order is expected to directly address and modify the regulatory policies that limited the access of crypto companies to banking services. According to sources familiar with the matter, these restrictions, which have made it difficult for cryptocurrency businesses to operate within the U.S. financial system, are being reconsidered and may be rolled back to facilitate a more inclusive environment for digital asset firms.
Banking
Donald Trump’s Executive Order on Crypto Banking Barriers
The executive order that President Trump is set to sign is expected to take action against what’s been termed as “Operation Chokepoint 2.0.” This term refers to the set of policies implemented under the previous administration, which allegedly exerted pressure on banks to deny financial services to crypto-related businesses. These policies have drawn criticism from the cryptocurrency community, which claims that such actions unfairly targeted and restricted the growing sector, hindering its potential growth and integration into the broader financial ecosystem.
Industry leaders have openly discussed the impact of these regulations, expressing concern that the previous administration made it harder for financial institutions to work with the crypto sector. White House officials have now confirmed that steps are being taken to remove these restrictions, signaling a shift in the government’s stance on crypto banking access. Bo Hines, the Executive Director of the Presidential Working Group on Digital Assets, has commented on the matter, saying, “I think that the industry can expect something in short order.” Although the precise details of the order have not yet been disclosed, the move indicates a clear direction toward loosening the regulatory grip on cryptocurrency businesses.
Potential Changes to Federal Reserve Policies
In addition to targeting the regulations imposed on commercial banks, the executive order may also address policies set by the Federal Reserve that have specifically limited crypto-focused banks from obtaining master accounts. These accounts are crucial for banks to be able to transact directly with the Federal Reserve and to provide essential banking services on a national level. Under the Biden administration, some crypto-oriented banks, including Custodia, were denied access to these master accounts, effectively blocking their ability to offer services to crypto firms.
Although there have been rising calls from various sectors of the financial and crypto communities for the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) to change their stance, neither institution has yet reversed any of their anti-crypto guidance. In a recent statement, Federal Reserve Chairman Jerome Powell acknowledged the growing issue of “crypto debanking,” expressing his concern over the increasing number of cases where crypto firms are denied banking services. He mentioned that the Fed would be taking a “fresh look” at the issue, signaling a potential shift in the central bank’s approach to the cryptocurrency market.
Caitlin Long, the CEO of Custodia Bank, has been particularly vocal in her criticism of the Fed and FDIC for their stance on crypto banking. Long argues that their policies have been more harmful to the crypto banking sector than the Office of the Comptroller of the Currency (OCC), which recently rolled back its restrictive guidelines on crypto banking.
Elizabeth Warren Signals Support for Crypto Banking Access
Senator Elizabeth Warren, who has been a long-time advocate for stricter cryptocurrency regulation, has also shown signs of support for addressing the debanking issue. In a recent Senate Banking Committee hearing, Senator Warren stated, “Debanking is a real problem. This shouldn’t be happening, and we need to fix it.” While Warren has previously pushed for more oversight in the crypto space, her recent comments suggest a willingness to collaborate with the Trump administration to ensure that crypto firms are not unjustly denied banking services. This shift in her stance is significant, as it reflects a growing recognition of the importance of providing a clear regulatory framework for crypto businesses to thrive within.
Trump’s Continued Focus on Cryptocurrency Policy
This forthcoming executive order marks the third significant crypto-related policy action taken by President Trump since returning to office. His first order, signed in January 2025, established the Presidential Working Group on Digital Asset Markets, a task force designed to oversee cryptocurrency-related issues. The second order, signed just last week, directed the creation of a U.S. government strategic Bitcoin reserve, along with a separate digital asset stockpile, as part of a broader strategy to enhance the U.S.’s digital asset holdings.
Reports have also indicated that the upcoming executive order could address the issue of stablecoins, potentially clarifying that these digital assets should not be classified as securities. If this provision is included, it would mark a significant regulatory shift, offering clearer guidelines for the stablecoin market and alleviating some of the uncertainty surrounding these digital assets.
A Shift in Regulatory Climate
A senior White House official has stated that the legal considerations surrounding this executive order are still under review before it is finalized. While a specific date for the signing has not been confirmed, sources suggest that the order could be signed within the week. If enacted, this order would signal a major policy shift toward a more crypto-friendly regulatory environment, potentially unlocking greater access to banking services for cryptocurrency firms and paving the way for further innovation in the digital asset space.
As the crypto industry continues to evolve, the Trump administration’s efforts to address regulatory barriers could play a crucial role in shaping the future of cryptocurrency and its integration into the global financial system. The outcome of this executive order may have significant implications for both crypto businesses and traditional financial institutions in the years to come.
