In a pair of executive orders signed on Tuesday, President Trump took bold action to address challenges within the evolving financial sector. The two orders were broad in scope and included directives to broaden the use and acceptance of digital currency, as well as to crack down on unauthorized access to financial institutions that could facilitate large-scale fraud.
In the first order, the president urged federal entities to review potential access for institutions that deal with digital currency. The Integrating Financial Technology Innovation into Regulatory Frameworks order requested a review of existing federal regulatory frameworks within 90 days. The goal of the review was to identify areas of regulation that could be updated to allow for the inclusion of emerging technologies. According to the order, regulators are directed to look for ways to “facilitate innovation, and competition to financial products and services for fintech firms, particularly those that are small and emerging.”
The order further requested that federal regulators follow up with the Assistant to the President for Economic Policy within 180 days with recommendations to remove undue barriers for fintech firms.
The second order sought to bolster President Trump’s domestic agenda by strengthening protections against undocumented immigrants having access to banking and payment services. The Restoring Integrity to America’s Financial System Order directed the Secretary of the Treasury to issue a formal Advisory to financial institutions, outlining the risks and warning signs of unauthorized use of the U.S. banking system. The order emphasized the need to protect against fraud schemes and financial exploitation.
In a recent effort led by Vice President J.D. Vance, the Trump administration has sought to eliminate fraud schemes perpetrated against federally funded programs. The recent executive order reaffirmed this commitment, stating the administration would “not tolerate national security and public safety risks caused by illicit cross-border financial activity, nor will it permit risks to our financial system posed by the extension of credit or financial services to the inadmissible and removable alien population.”