Trump’s aggressive fintech deregulation push is quietly creating a policy opening that could position Ripple and XRP for a role inside the U.S. Federal Reserve’s payment infrastructure.
President Trump signed an executive order on May 19, 2026 directing the Federal Reserve to evaluate expanding payment account access for non-bank fintechs, a move that could clear a regulatory path for Ripple and XRP to plug into the U.S. central bank’s payment infrastructure.
The order, titled “Integrating Financial Technology Innovation into Regulatory Frameworks” and published as Federal Register Document 2026-10399, requires six federal regulators, including the SEC, CFTC, CFPB, FDIC, OCC, and NCUA, to review rules that, in the order’s own words, “favor incumbents at the expense of innovators.”
What to Know
- Trump’s executive order directs the Federal Reserve to report on legal authorities and options for granting Reserve Bank payment account access to non-bank fintechs dealing in digital assets, with a 90-day deadline for agencies to identify barriers and 180 days to take concrete steps encouraging fintech innovation.
- Ripple has already applied for a Federal Reserve master account after receiving conditional OCC approval for a national trust bank charter (Ripple National Trust Bank) in December 2025, positioning it among the first crypto-native firms in line if the Fed opens the door.
Trump’s Fintech Agenda Is Quietly Redrawing the Rules for Digital Payments
The May 19 executive order is the latest in a sequence of pro-crypto policy actions from the Trump administration, following the January 2025 digital asset leadership order and the March 2025 Strategic Bitcoin Reserve directive. What sets this order apart is its direct targeting of the Federal Reserve’s account access framework.
Specifically, the Fed must report on its legal authorities governing Reserve Bank payment accounts, outline options for expanding access with appropriate risk safeguards, identify legislative or regulatory changes needed for direct access, and review policies governing Reserve Bank account decisions. A companion executive order, “Restoring Integrity to America’s Financial System” (Federal Register 2026-10400), was signed the same day and imposes AML/KYC requirements on the same firms the fintech order aims to help.
Senator Cynthia Lummis, Chair of the Senate Banking Subcommittee on Digital Assets, praised the action.
“This Executive Order puts the Federal Reserve on notice that it must follow the law and provide equal access.”
— Senator Cynthia Lummis (@SenLummis)
The precedent already exists. Kraken became the first crypto firm to receive a Federal Reserve master account when the Federal Reserve Bank of Kansas City approved its application on March 4, 2026. That approval came more than five years after Kraken first applied in 2020, a timeline that tempers expectations for newer applicants.
Why Ripple and XRP Are Uniquely Positioned to Walk Through That Door
Ripple’s positioning is more advanced than most competitors. The company secured conditional approval from the OCC for Ripple National Trust Bank in December 2025, then applied for a Federal Reserve master account. It joins Anchorage Digital and Wise, which moves approximately $130 billion per year in cross-border consumer payments, as publicly named applicants.
XRP trades at $1.33 with a market cap of $82.4 billion, roughly 64% below its all-time high of $3.65 set in July 2025. The token’s 24-hour trading volume stands at $3.34 billion despite a broader market environment where the Crypto Fear & Greed Index reads 28, firmly in “Fear” territory.
What distinguishes XRP in this context is Ripple’s existing institutional infrastructure. RippleNet and its On-Demand Liquidity service already operate with banks and payment processors globally, using XRP as a bridge currency for real-time gross settlement. A Fed master account would let Ripple clear and settle payments via Fedwire and FedNow, integrating its network directly into U.S. payment rails rather than operating adjacent to them.
The market appears to be pricing in regulatory optimism selectively. XRP spot ETFs recorded $8.88 million in daily net inflows on May 21, even as Bitcoin and Ethereum ETFs faced outflows, suggesting investors see XRP-specific upside from the executive order. That divergence is notable against the backdrop of institutional repositioning elsewhere, as seen when Harvard exited its $87 million Ethereum ETF position after just three months.
What Still Has to Go Right, and What to Watch
A critical legal obstacle stands between Ripple and a traditional master account. Custodia Bank CEO Caitlin Long has pointed out the structural problem directly.
“All these trust companies, including OCC trust companies, are not eligible to get access to the payment system for moving US dollar deposits… Getting access to Fedwire and ACH at the Fed, you’ve got to legally be a depository institution.”
— Caitlin Long (@CaitlinLong_)
Ripple National Trust Bank is not an insured depository institution. Under current law, that disqualifies it from traditional Fedwire and ACH access. The workaround under consideration is a proposed “skinny” or limited payment account framework that would create a new lighter-access tier. According to unconfirmed reports, the Federal Reserve has opened a 60-day public comment period on this revised framework.
According to a single source, the Fed Board is urging reserve banks to temporarily pause decisions on new Tier 3 master account access requests until December 2026. If true, that would delay Ripple’s application regardless of the executive order’s intent.
Two concrete milestones to track: the 90-day deadline (approximately August 17, 2026) for agencies to identify regulatory barriers, and the 180-day deadline (approximately November 15, 2026) for agencies to take steps encouraging fintech innovation. The outcome of the skinny master account comment period will also be decisive.
The single biggest risk is legal, not political. Even with a pro-crypto Fed Chair in Kevin Warsh and executive branch support, the statutory requirement that master account holders be depository institutions cannot be waived by executive order. It requires either new legislation or the Fed’s adoption of the limited-access framework. Meanwhile, the companion AML/KYC executive order (2026-10400) could impose compliance burdens that offset any opening the fintech order creates, a tension largely absent from coverage in other regulatory developments this month.
Policy openings do not guarantee adoption. Kraken’s five-year wait from application to approval illustrates the pace. Ripple applied in 2025; the executive order accelerates the conversation, but the Fed retains independent authority over every individual decision.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.
