Fed Master Account Path Opens for Crypto in Twin Trump Orders

President Donald Trump signed two executive orders that directly alter how crypto and fintech firms interact with the U.S. banking system. One order clears a path for non-bank financial companies to obtain Federal Reserve master accounts. The other tightens anti-money laundering rules under the Bank Secrecy Act. Together, they shift the regulatory landscape for digital asset integration – and for firms like Kraken, Ripple, and Anchorage Digital, the stakes are immediate.

Crypto analyst Chad Steingraber described the move as one of the biggest pushes yet toward integrating digital assets into mainstream finance. The split approach – one hand offering access, the other demanding compliance – will test how quickly crypto infrastructure can meet traditional oversight standards.

Fed Master Accounts and the Kraken-Ripple-Anchorage Pipeline

The first order instructs the Federal Reserve to review how crypto firms and non-bank financial companies can access wholesale payment systems and master accounts. Master accounts allow direct settlement through Fedwire without routing through a traditional bank. That would cut out intermediary banks that currently control crypto firms' access to the payment system.

The firms with the most to gain

Three companies have been pushing hardest for deeper integration with U.S. financial rails:

• Kraken – The exchange applied for a special-purpose national bank charter in 2020. With a master account, it could move customer funds directly via Fedwire, reducing settlement time.
• Ripple – Already linked to the Federal Reserve's Faster Payments Task Force and FedNow integrations. A master account would let Ripple's payment network bypass correspondent banking entirely.
• Anchorage Digital – The federally chartered crypto bank would gain the ability to hold reserves and process payments on par with traditional banks.

The risk behind the access

Access to master accounts also means exposure to Federal Reserve oversight on liquidity, capital, and reporting. The Independent Community Bankers of America (ICBA) warned that granting crypto companies direct Fed access could increase financial system risks. The ICBA's logic: master accounts treat the holder as a settlement agent. If a crypto firm mismanages reserves, the Fed could be exposed to settlement risk.

Practical rule: A master account is not a seal of safety – it is a direct pipe into the payment system, which amplifies both opportunity and operational risk.

Treasury's Anti-Money Laundering Tightening

The second executive order asks the Treasury Department to strengthen Bank Secrecy Act rules and improve customer-identification systems. Banks will be required to monitor suspicious activity tied to payroll tax evasion, labor trafficking, and unregistered payment platforms.

The citizenship check that never made the final cut

Earlier versions of the proposal reportedly included strict citizenship checks for all bank accounts. Banking groups opposed the idea, warning it would disrupt online banking services and impose verification burdens that slow transactions. The final order dropped the citizenship provision. The focus on unregistered payment platforms directly targets crypto exchanges and fintech apps that operate outside existing regulatory frameworks.

Key insight: The AML order does not target crypto specifically – it targets any money movement outside registered channels. That includes peer-to-peer crypto transfers, unhosted wallets, and payment apps that lack KYC. Firms with strong compliance infrastructure gain a competitive edge.