Executive Order 14405 directs federal financial regulators to review rules that may hinder fintech competition and asks the Federal Reserve to examine whether certain non–bank firms could gain direct access to its payment services.
President Donald Trump signed an executive order on May 19, 2026, directing U.S. financial regulators to reassess rules and supervisory practices that may make it harder for financial–technology companies to compete, partner with established financial institutions or obtain federal approvals.
Executive Order 14405, titled “Integrating Financial Technology Innovation Into Regulatory Frameworks,” establishes a federal policy of reducing unnecessary regulatory barriers while encouraging the use of digital assets and other emerging technologies within traditional financial services.
The order defines fintech broadly, covering non–bank companies involved in areas including payments, lending, investment management, brokerage, digital banking, digital assets and blockchain–based services.
A central requirement is a review by six federal financial regulators: the Consumer Financial Protection Bureau, Securities and Exchange Commission, National Credit Union Administration, Commodity Futures Trading Commission, Federal Deposit Insurance Corporation and Office of the Comptroller of the Currency. They were directed to examine regulations, guidance, supervisory practices and application procedures that could unnecessarily restrict fintech firms, particularly smaller and emerging companies.
The agencies were also instructed to identify obstacles affecting partnerships between fintech businesses and regulated banks, credit unions, broker–dealers, investment advisers and futures commission merchants. The review also covers pathways for companies seeking financial charters, insurance and other federal authorizations. The order says any reforms should continue to account for financial stability, consumer and investor protection, market integrity and the safety of regulated institutions.
The first major deadline was August 17, 2026, when the 90–day review period expired. Publicly available information shows that agencies have already begun responding. For example, the Commodity Futures Trading Commission issued a request for information in June seeking views on regulations that could impede fintech innovation and competition.
The order also gives the Federal Reserve a significant assignment. It asks the central bank to examine the legal and regulatory framework governing access to Federal Reserve payment accounts and services by uninsured depository institutions and non–bank financial companies, including firms involved in digital assets and other novel financial activities.
The Federal Reserve was asked to report its findings and recommendations within 120 days of the order. If it determines that existing law permits expanded access, the order asks it to establish transparent application procedures and decide complete applications within 90 days.
That portion of the initiative has already produced regulatory activity. According to KPMG’s review of developments following the order, the Federal Reserve proposed changes involving payment–account access, Regulation A and Regulation D, with comments due July 27.
The administration’s approach therefore does not immediately grant fintech companies unrestricted access to the banking system. Instead, the order sets a regulatory–review process and asks agencies to determine what changes are legally and prudentially possible. The order itself explicitly states that implementation must remain consistent with applicable law and does not create an enforceable legal right for private parties.
The next significant milestone is the 180–day deadline, when regulators are directed to take steps to encourage innovation based on their reviews. That deadline falls in November 2026.
The practical impact will depend on what the agencies ultimately change. For fintech companies, potentially faster approvals, easier partnerships with regulated institutions and broader payment–system access could reduce barriers to entering financial markets. At the same time, the order preserves requirements concerning consumer protection, financial stability, market integrity and risk management.
Key Takeaways
- Executive Order 14405 was signed by President Trump on May 19, 2026.
- Six federal financial regulators were directed to review rules and practices that may impede fintech competition.
- The review specifically addresses partnerships between fintech firms and regulated financial institutions.
- The Federal Reserve was asked to examine potential direct payment–system access for certain non–bank and uninsured firms.
- Agencies were required to complete their initial reviews within 90 days, with further action expected within 180 days.
- The order establishes a framework for regulatory change rather than automatically granting new banking or payment privileges.
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