May 21, 2026PartnershipUS

Trump Executive Order Directs Fed to Review Fintech Access to Payment Rails

The Trump administration issued an executive order on May 20, 2026, mandating a review of how the Federal Reserve and other agencies can support fintech firms through greater central bank access. The directive targets the Fed's payment infrastructure, which most fintechs currently reach only through sponsor banks. Fed Governor Christopher Waller and the Financial Technology Association have been connected to the push for broader access.

The order fits within the administration's wider deregulatory agenda. No timeline for the review's completion has been disclosed. If the review leads to policy changes, fintechs could gain more direct access to Fed payment rails, reducing their dependence on banking intermediaries.

Entities

Federal ReserveBank Financial Technology AssociationFintech

Implications

Could reduce fintechs' reliance on sponsor banks by enabling more direct Fed-rails access, disrupting the current BaaS intermediary model.
May accelerate consolidation or repositioning among sponsor banks as their gatekeeper role diminishes.
Signals a broader US regulatory environment favorable to embedded finance and non-bank financial services.