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- Donald Trump’s incoming Executive Order could fine banks that block crypto firms from using regular banking services.
- Easier access to banks might help coins like XRP, XLM, and Bitcoin gain more support and grow.
A new Executive Order from President Donald Trump could soon change how banks in the United States treat crypto firms. The plan, still in draft form, is expected to push back against banks that have refused to work with digital asset companies. If signed, it could help coins like XRP, Stellar (XLM), and Bitcoin (BTC) by making it easier for their stakeholders to access banking services.
Order Aims to Stop Banks from Blocking Crypto Firms
The draft order, first mentioned by analyst Paul Barron in a post on X, says banks could face penalties for shutting out crypto firms without cause. Right now, many of these companies have trouble keeping business accounts, moving money, or handling loans. Some banks have even cut off services to crypto startups in the past without warning.
The new rule would direct regulators to look into whether banks are breaking laws like the Equal Credit Opportunity Act. If they are found to be unfair, they could be fined or told to fix their practices. The Small Business Administration would also be involved, especially when banks are handling government-backed loans.
This move comes after years of complaints from the crypto space. Industry leaders say they have been locked out of the traditional banking system for too long. Binance founder Changpeng Zhao pointed out that many U.S. banks have blocked crypto transactions in the past. With this order, that could start to change.
Barron also said this could be one of the most important steps for crypto since the approval of Bitcoin ETFs earlier in the year. He believes it will give crypto firms a fair shot and may attract larger investors who had stayed away due to limited banking options.
Notably, this marks another important step in U.S. crypto regulation since the signing of the Genius Act, as covered in our previous report. It also stands out as a major move for the crypto space under President Trump’s second term. Earlier this year, CNF reported that Trump signed a national crypto order focused on building digital asset reserves in the United States.
Assets Like XRP, XLM, and Bitcoin Could Benefit
It is worth noting that if the newly drafted order is approved, it may help coins like XRP, XLM, and Bitcoin grow faster. Many smaller crypto projects have struggled because they cannot get basic banking services. That makes it hard to raise money, pay employees, or even stay in business.
It is important to state that with financial institutions no longer able to deny services without reason, crypto firms may find it easier to operate. This could increase confidence in the market and bring more stability to digital assets.
The order could be signed soon, and if that happens, agencies like the FDIC and the DOJ are expected to begin reviews. For now, the crypto world is waiting to see what comes next.
Meanwhile, as noted in our earlier report, the United States and associated firms now control roughly 40% of all Bitcoin in circulation. Notably, this makes it the largest known holder by a significant margin.
