President Trump issued an executive order on May 19 directing federal financial regulators to review rules, supervisory practices, and application processes that affect fintech companies and their partnerships with banks. According to the filing, current regulatory frameworks may create unnecessary barriers to entry for these firms.
The directive instructs agencies to identify ways to streamline oversight. It does not tell regulators to weaken safety and soundness standards, consumer protections, or financial stability rules — those remain in place.
The executive order defines “fintech firms” broadly. They cover nonbank companies that use technology to provide or support financial products and services. That includes payments, lending, brokerage activities, custodial services, and digital asset-related activities.
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Specifically, the directive focuses on three areas: regulatory reviews, supervisory practices, and application processes. It also targets access to payment systems, which has been a long-running tension point between established banks and newer fintech entrants.
What the order actually does
The order itself does not change any rules. It is a directive for agencies to study and report back. Each relevant regulator — including the Federal Reserve, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the Consumer Financial Protection Bureau — will need to review their own policies.
Agencies must identify regulations that “impede the ability of fintech firms to compete” or that “limit access to payment systems and other financial infrastructure.” They must also propose changes. The order also asks regulators to look at chartering and licensing processes. Some fintech firms have pursued special-purpose bank charters or state-level licenses. That process has been uneven across states and agencies.
Payment system access is the core fight
Access to payment systems — like the Federal Reserve’s FedNow and Fedwire services, or the automated clearing house network — has been a persistent barrier for nonbank firms. Banks have argued that letting these companies plug directly into these systems creates risk. The companies say the current structure gives banks an unfair gatekeeper role.
Journalists on the scene note that the order directs regulators to review how they handle requests from fintech firms for access to payment systems. It does not mandate that access be granted. But it signals that the administration wants a clearer, less restrictive process.
Past efforts to expand payment system access have stalled over concerns about fraud, operational risk, and consumer protections. The order does not resolve those tensions. It simply asks regulators to take another look.
What happens next
Agencies now have a defined period to submit their findings and recommendations to the White House. The order sets deadlines, though the exact timeline depends on which agency is responding.
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Financial institutions, fintech firms, and digital asset companies should expect to see changes in how regulators approach supervisory exams and charter applications. The order specifically calls out “supervisory practices” — meaning how examiners interact with these firms and their bank partners on a day-to-day basis.
For now, the order is a signal, not a rule. It tells regulators to move in a direction. How far they go will depend on the reports they produce and whether Congress takes any legislative action to codify the changes.
A flat reading of the document: it is a review. Nothing more, nothing less. Whether it leads to meaningful reform depends on the follow-through.
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