Nothing earth‑shattering happened in crypto policy this week. But the moves that did happen could matter quite a lot down the road.
President Donald Trump signed two executive orders this past Tuesday. One directed the broader government to update existing regulations to better integrate crypto into payment systems, while the other directed the Treasury Department and regulators to strengthen Bank Secrecy Act regulations.
The very next day, the central bank followed up with its own move.
The Fed's "Skinny" Master Account Proposal
For years, crypto firms have wanted access to the Federal Reserve's payment rails, the same infrastructure that traditional banks use to move money. The problem is that getting that access typically required being a fully chartered bank. That's changing.
The Federal Reserve Board published its updated proposal for a skinny master account, laying out how the central bank envisions granting fintech and crypto firms access to its payment rails without requiring them to be full‑fledged, Office of the Comptroller of the Currency‑chartered banks.
This is a meaningful shift. If it goes through, crypto companies could plug directly into the U.S. payments system without having to restructure as traditional banks, a huge operational and regulatory burden that most couldn't realistically take on.
There's a catch, though. The Fed cannot necessarily do all of this on its own, Congress may need to pass legislation further detailing what types of entities may be qualified for an account.
Trump's Fintech Order: What It Actually Says
The fintech‑focused executive order went further than just crypto. It directed federal regulators to review their existing policies to evaluate how they regulate financial institutions and identify rules that might block fintech firms from partnering with regulated entities. The order also directed the Fed to review how it handles uninsured depository institutions and their access to payment accounts.
That's a broad mandate, and one that could shake up how a lot of financial technology companies operate in the U.S., not just crypto.
The BSA Order and Its Risks
The second executive order is more complicated. On the surface it's about financial integrity. But experts are already flagging that it could catch crypto platforms in a very wide net.
While the order did not explicitly mention cryptocurrency or decentralised finance trading platforms, they could get caught up in any ultimate guidance, said Nicholas Anthony, a research fellow at the Cato Institute. "Right now it's in the hands of the Treasury, and the Treasury is able to apply it not only however it sees fit, but also to whoever it sees fit," he said.
That kind of open‑ended authority is precisely what makes the crypto industry nervous.
The Clarity Act Is Running Out of Time
Meanwhile, the Senate's flagship crypto legislation is losing runway fast. The Senate left town for the Memorial Day recess without voting on a reconciliation bill. There are only 19 working days in June and 15 in July, and the Senate still needs to sort through reconciliation, a renewal of the Foreign Intelligence Surveillance Act, and possibly a housing bill.
Adding to the tension, Trump's administration had sought $1 billion for a planned East Wing ballroom and more recently another $1.8 billion for a fund that members of both parties have referred to as a "slush fund", a political fight that consumed negotiating time and left the Clarity Act waiting.
Floor time is scarce. Every week the Clarity Act doesn't move is a week it falls further down the queue.
