Trump’s January 23rd executive order titled “Strengthening American Leadership in Digital Financial Technology” forces banks to serve crypto firms or face government penalties. The policy flips previous restrictions, mandating “fair and open access to banking services” for legitimate digital asset companies. Banks can no longer discriminate against crypto businesses without consequences. A new working group will review existing regulations while eliminating problematic rules like SAB 121. The administration clearly wants America leading digital finance innovation, and there’s much more happening behind these regulatory changes.
Just three days into his presidency, Trump signed an executive order that completely flips the script on crypto regulation. The January 23rd directive, titled “Strengthening American Leadership in Digital Financial Technology,” fundamentally tells the banking industry to play nice with crypto firms or face consequences.
Gone are the days when banks could mysteriously close accounts or deny services to legitimate crypto businesses. The executive order explicitly promotes “fair and open access to banking services” for law-abiding crypto companies and individuals. Translation? No more financial censorship. Similar to Hong Kong’s approach, the order emphasizes strict KYC checks for all crypto businesses.
Banks that provide custody and financial services to crypto firms now get government backing instead of regulatory grief. The order declares support for these institutions without subjecting them to “undue penalties.” It’s almost like someone finally realized that treating an entire industry like financial pariahs wasn’t great for innovation.
The order takes direct aim at the previous administration’s approach. Biden’s Executive Order 14067 focused heavily on risks and restrictions. Trump’s version? Pure growth and innovation mode. The shift couldn’t be more dramatic if it tried.
A new crypto working group gets formed, led by Trump’s special advisor for AI and crypto. The SEC, CFTC, Treasury, Commerce, and Homeland Security all get seats at the table. Their mission involves reviewing existing regulations and potentially scrapping or modifying rules that hamper digital asset development. The working group is encouraged to hold public hearings and gather expertise from digital asset leaders to inform their recommendations.
The order specifically kills SAB 121, the SEC guidance that made banking custody of crypto assets unnecessarily complicated. In comes SAB 122, presumably designed to make life easier for banks wanting to hold digital assets for clients.
Perhaps most significantly, the order slams the brakes on any Central Bank Digital Currency plans. Federal agencies are prohibited from establishing, issuing, or circulating CBDCs. Period. The administration views CBDCs as threats to financial stability, privacy, and monetary sovereignty.
The regulatory approach emphasizes technology-neutral frameworks that accommodate emerging blockchain technologies. Evidence-based outcomes replace blanket restrictions. The working group will also explore the potential creation of a national digital assets stockpile as part of their comprehensive review. The message rings clear: America wants to lead in digital finance, not regulate it into submission.
Banks now operate in a completely different environment where crypto cooperation gets rewarded rather than punished.
