President Donald Trump has signed an executive order designed to tackle debanking practices within the cryptocurrency sector, aiming to alleviate restricted access to essential banking services faced by crypto companies.
The order requires federal regulators to assess complaints submitted against banks for allegedly denying services. It mandates the reinstatement of clients found to have been unlawfully deprived of their banking access.
The action comes against a backdrop where banking associations, including the American Banking Association, previously attempted to obstruct the implementation of crypto bank applications, such as Ripple’s, by citing insufficient public scrutiny.
Industry observers suggest this executive order could significantly enhance banking access for cryptocurrency businesses, potentially fostering greater growth and innovation across the sector.
The move is timely given that prominent crypto firms like Ripple and Circle are actively seeking banking licenses, underscoring the persistent friction between the evolving crypto industry and established banking institutions.