[Federal Register Volume 91, Number 99 (Friday, May 22, 2026)]
[Presidential Documents]
[Pages 30475-30477]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2026-10399]
Presidential Documents
Federal Register / Vol. 91, No. 99 / Friday, May 22, 2026 /
Presidential Documents
[[Page 30475]]
Executive Order 14405 of May 19, 2026
Integrating Financial Technology Innovation Into
Regulatory Frameworks
By the authority vested in me as President by the
Constitution and the laws of the United States of
America, it is hereby ordered:
Section 1. Policy. The United States is a global leader
in financial innovation, driven in part by the rapid
growth of financial technology (fintech) firms. These
firms provide innovative services and solutions that
enhance access to financial products and services and
create economic opportunity for all Americans. To
foster this financial innovation, the Federal
Government must update regulations to allow integration
of digital assets and innovative technology into
traditional financial services and payment systems. The
Federal Government must also remove overly burdensome
and fragmented regulations and supervisory practices
that form barriers to entry and primarily benefit
incumbent financial services firms.
It is therefore the policy of the United States to
streamline regulatory processes, reduce unnecessary
barriers to entry, and encourage collaboration between
fintech firms, federally regulated financial
institutions, and Federal financial regulators.
Sec. 2. Definitions. For the purposes of this order:
(a) ``Fintech firm'' refers to a non-bank company that
uses or develops technological means to offer or
support the offering of financial products or services,
including, but not limited to, any application or any
digital or online technology that facilitates access
to, management of, or data processing for financial
products or services. Such financial products or
services may include, but are not limited to, payment
processing, lending, deposit-taking, derivatives,
investment management, brokerage services, underwriting
and capital-market activities, custodial and fiduciary
services, digital banking, digital asset-related
services, securities and commodities market activities,
and blockchain-based services. For the avoidance of
doubt, such financial products or services also include
the activities set forth in paragraphs (A) through (G)
of section 4(k)(4) of the Bank Holding Company Act of
1956 (12 U.S.C. 1843(k)(4)).
(b) ``Bank'' has the meaning given that term in
section 3 of the Federal Deposit Insurance Act (12
U.S.C. 1813).
(c) ``Credit union'' means an ``insured credit
union'', as defined in section 101 of the Federal
Credit Union Act (12 U.S.C. 1752(7)).
(d) ``Financial products and services'' refer to
activities permissible under Federal or State law for a
bank or credit union to undertake as well as the
financial activities listed in Appendix A to 12 CFR
part 242.
(e) ``Federal financial regulators'' refers to the
Consumer Financial Protection Bureau, the Securities
and Exchange Commission, the National Credit Union
Administration, the Commodity Futures Trading
Commission, the Federal Deposit Insurance Corporation,
and the Office of the Comptroller of the Currency.
Sec. 3. Streamlining Regulatory Processes. (a) Within
90 days of the date of this order, the head of each
Federal financial regulator shall conduct a review of
existing regulations, guidance, supervisory practices,
and application processes to identify those that could
be updated to facilitate innovation,
[[Page 30476]]
and competition to financial products and services for
fintech firms, particularly those that are small and
emerging. The reviews shall identify regulations,
guidance documents, orders, no-action letters, and
other items that unduly impede fintech firms from
entering into partnerships with federally regulated
institutions (including insured depository
institutions, credit unions, broker-dealers, investment
advisers, and futures commission merchants), as well as
regulations, guidance documents, orders, no-action
letters, and other items that could be amended to
streamline application processes for eligible fintech
firms seeking bank charters, credit union charters,
deposit or share insurance, and other Federal licenses,
registrations, and authorizations, balancing innovation
interests with the importance of safety and soundness,
consumer and investor protection, market integrity,
financial stability, and oversight.
(b) Within 180 days of the date of this order, the
head of each Federal financial regulator shall, in
consultation with the Assistant to the President for
Economic Policy, take steps to encourage innovation as
a result of the review described in subsection (a) of
this section.
Sec. 4. Access to Federal Reserve Services. (a) The
Board of Governors of the Federal Reserve System (FRB)
is requested to complete the actions described in
section 3 of this order.
(b) The FRB is requested to conduct a comprehensive
evaluation of the legal, regulatory, and policy
framework governing access to Reserve Bank payment
accounts and payment services by uninsured depository
institutions and non-bank financial companies,
including those engaged in digital assets and other
novel financial activities (collectively, covered
firms), and those functioning as direct participants in
real-time (instant) payment networks. Within 120 days
of the date of this order, the FRB is requested to
submit a report to the President, through the Assistant
to the President for Economic Policy, setting forth its
findings, options, and any recommendations. The
evaluation is requested to assess:
(i) the legal authority of the Federal Reserve, under the Federal Reserve
Act and other applicable Federal law, to extend direct access to Federal
Reserve payment accounts and payment services to covered firms;
(ii) options for expanding such access to the extent permitted by law,
subject to appropriate risk management requirements;
(iii) legal impediments that preclude direct access and a detailed analysis
of those impediments, and legislative or regulatory options that would
enable such access while mitigating risks to the payment system, financial
stability, and the United States economy; and
(iv) whether, and if so to what extent, each of the 12 Federal Reserve
Banks has legal authority to act independently of the FRB in granting or
denying access to Reserve Bank payment accounts and payment services and,
if independent action and decisions by individual Federal Reserve Banks is
legally permissible, what FRB-level regulations or policies the FRB has
established or proposes to establish to ensure that covered firms are
evaluated on a consistent basis regardless of which Federal Reserve Bank
receives or processes their applications.
(c) To the extent the FRB determines, pursuant to
its review under subsection (b) of this section, that
existing law permits the extension of direct access for
covered firms to Reserve Bank payment accounts and
payment services, the FRB is requested to establish
transparent application procedures for such access and
to make determinations with respect to complete
applications within 90 days of the application date for
such access.
Sec. 5. General Provisions. (a) Nothing in this order
shall be construed to impair or otherwise affect:
(i) the authority granted by law to an executive department or agency, or
the head thereof; or
(ii) the functions of the Director of the Office of Management and Budget
relating to budgetary, administrative, or legislative proposals.
[[Page 30477]]
(b) This order shall be implemented consistent with
applicable law and subject to the availability of
appropriations.
(c) This order is not intended to, and does not,
create any right or benefit, substantive or procedural,
enforceable at law or in equity by any party against
the United States, its departments, agencies, or
entities, its officers, employees, or agents, or any
other person.
(d) The costs for publication of this order shall
be borne by the Department of the Treasury.
(Presidential Sig.)
THE WHITE HOUSE,
May 19, 2026.
[FR Doc. 2026-10399
Filed 5-21-26; 11:15 am]
Billing code 4810-25-P