In a groundbreaking move for the cryptocurrency industry, President Donald Trump has signed an executive order urging U.S. financial regulators to reconsider the access that fintech and crypto-related firms have to core payment infrastructures. This order comes as Ripple continues its pursuit of a Federal Reserve master account, integral to its strategy surrounding the RLUSD stablecoin.
Dated May 19, the order, titled “Integrating Financial Technology Innovation into Regulatory Frameworks,” emphasizes the necessity for the federal government to modernize regulations. It argues that existing frameworks must evolve to accommodate digital assets and innovative technologies within traditional financial services. The executive order specifically calls for the elimination of overly burdensome regulations that currently favor established financial institutions.
A key aspect of this order for crypto firms is its focus on Federal Reserve services. The directive instructs the Fed to assess the legal, regulatory, and policy frameworks that govern access to Reserve Bank payment accounts for uninsured depository institutions and non-bank financial companies, including those involved with digital assets. The Federal Reserve is expected to provide findings and recommendations within 120 days, addressing whether the current laws permit expanded access and if regional Reserve Banks can independently approve or deny applications.
Implications for Ripple
The timing of the order is particularly significant for Ripple. In July 2025, CEO Brad Garlinghouse confirmed that the company had applied for a U.S. national bank charter and was concurrently seeking a Fed master account. This account would grant Ripple access to the Federal Reserve’s payment infrastructure and allow it to hold RLUSD reserves directly.
Ripple’s bid is not happening in a vacuum. In March, Kraken Financial, a subsidiary of the cryptocurrency exchange Kraken, became the first digital asset bank in the U.S. to secure a Federal Reserve master account. This milestone followed over five years of regulatory discussions and enables Kraken to connect directly to Fedwire without needing intermediary banks.
However, the approval granted to Kraken comes with limitations. Their account is categorized as limited-purpose and was initially approved for a one-year term, permitting access to Fedwire and limited overnight balances, though it does not allow for interest on reserves or access to essential services like emergency Fed lending.
Ripple is not the only company vying for similar access; other firms such as Anchorage Digital and Wise are also in the mix. The landscape for master accounts has already faced legal challenges. Custodia Bank, another Wyoming-based crypto institution, applied for a master account but found itself embroiled in litigation against the Federal Reserve after its application faced delays. Ultimately, Custodia’s request was denied, setting a precedent that Trump’s order will now compel the Fed to analyze.
Interestingly, Ripple has shown interest in a more limited option. In November, legal officer Stu Alderoty mentioned that the Fed’s proposal for a “skinny” account could be appealing, as it might enhance the redeemability of RLUSD reserves without the full features of a traditional master account.
Prior to the executive order, the Fed had already opened discussions about a special-purpose payment account aimed at promoting payments innovation, which would differ from a master account in that it would not accrue interest and would be subject to balance limits.
Ripple’s ambitions for a stablecoin significantly heighten the stakes involved in acquiring a master account. The company announced in December that the Office of the Comptroller of the Currency had conditionally approved Ripple National Trust Bank, which is set to manage RLUSD reserves under the oversight of both the New York Department of Financial Services and the OCC.
While Trump’s order does not guarantee Ripple a master account, it does establish a formal timeline for examining the fundamental question: should firms developing crypto payment and stablecoin systems continue relying on traditional bank intermediaries or gain direct access to the underlying infrastructure of dollar settlements?
As of now, XRP is trading at $1.3647.
