Trump signs order to ensure banking services to the crypto sector and choose new member for the Fed

The president signed a decree with which he guarantees that the companies in the crypto sector can access banking services in the US. FED GOVERNMENT BOARD.

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• Trump signed an order to prevent regulators from aiming financial entities that support the crypto industry.
• The order eliminates the “Reputational risk” as an element to increase supervision to these entities.
• Republican senators, including Tim Scott and Cynthia Lummis, supported the measure.
• He also announced the incorporation of Stephen look at the FED GOVERNMENT BOARD.

A few minutes ago, the president of the United States, Donald Trump, He signed an executive order aimed at protecting the cryptoactive industry from initiatives that seek to limit their access to financial services. The measure aims to prevent federal regulators from pointing out to financial institutions that are related to this sector, an action that has been perceived as a form of “Disconcarization” of digital companies.

According to an information sheet published by the White House, reviewed by various media, “The digital asset industry has also been the target of unjust inbizuation initiatives”. These attempts to exclude the crypto companies of traditional banking services have eroded public confidence in banking institutions and regulators, in addition to causing economic damages, freezing payrolls and generating significant financial loads for citizens who comply with the law.

The elimination of “Reputational risk” as a cause of supervision

A key aspect of the executive order signed by Trump is the elimination of the concept of “Reputational risk” as justification for the additional supervision of the institutions that collaborate with the cryptoactive industry. This term refers to “Potential that negative advertising on the commercial practices of an institution, whether true or not, causes a decrease in its customer base, expensive litigation or revenue reductions.”

Although this concept is not exclusive to the crypto scope, who closely follow these facts argue that it has been used specifically to attack digital asset companies, increasing the surveillance of their relationships with banks. The measure, according to the White House, It seeks to restore equity in the financial system and allow institutions that wish to get involved with cryptoactive do so without fear of reprisals for political reasons.

The “Operation Choke Point 2.0”

The order signed by Trump responds to the complaints that have arisen within the crypto industry, especially in relation to bank accounts that have been closed unjustified by financial institutions. The “Operation Choke Point 2.0” It is a term coined by Nic Carter, co -founder of Castle Island Venturesin 2023, which refers to a series of actions of federal regulators to restrict how banks are related to the crypto industry.

This term keeps similarities with the “Operation Choke Point”a 2013 initiative of the United States Department of Justice that tried to limit banking services to sectors considered high risk, as lenders of rapid payments and merchants of firearms.

In the legislative field, the president of the Senate Banking CommitteeTim Scott, has been promoting a bill that seeks to eliminate the ability of regulators to use “reputational risk” as part of their supervision, seeking to avoid “political weapon”Of the federal agencies against the crypto industry.

Political reactions to the executive order

The firm of the executive order by Trump was backed by several Republican legislators. French Hill, president of the Financial Services Committee of the House of Representativesdescribed the measure as “An important step”. He stressed that “Point to Americans for their political beliefs undermines the freedoms on which our country was founded and should not have a place in our financial system.”

For her part, Senator Cynthia Lummis expressed her support for the Executive Order, accusing Biden’s government of having empowered bureaucrats not chosen to choose winners and losers based on political preferences instead of a sensible policy. The legislator stressed that Trump’s order represents a crucial step to provide transparency and responsibility to the system, which for a long time has had control over the digital asset industry.

Choice of new member for the Board of the Fed

From the hand with the signing of this and other decrees, President Trump He also appointed Stephen look for the Board of Governors of the Federal Reserve (Fed), which fills the vacancy that was left after the departure of one of the officials.

Who left his position was Adriana Kugler, former governor of the Fed, which announced its effective resignation last week. This opened the opportunity for President Trump to name a new member, being elected to look, someone related to the president’s economic and monetary ideas.

It is believed that the arrival of Miran will exert more pressure within the Fed, especially against its director, Jerome Powell, with whom Trump currently has friction due to the differences in criteria around the measures related to interest rates. While the president insists that these should be reduced to encourage the economy, Powell has insisted that they will remain raised by the inflationary risks involved in tariff policies.

The future of crypto regulation in the US.

Back with the measure signed by Trump, this not only represents a brake on actions against the crypto industry, but also a clear declaration of principles on the importance of economic freedom and political non -discrimination within the US financial system.

As the debate on the regulation of cryptoactives continues in the Congress, with legislative initiatives that seek to end the “Political weapon” Of the regulators, the crypto industry could be seeing an important change in the way it is regulated and allowed to interact with banks and other financial institutions.

Article written by a content editor. Edited by Angel Di Matteo / Diariobitcoin

Original image of Diariobitcoin, created with artificial intelligence, for free use, licensed under public domain

WARNING: Diariobitcoin offers informative and educational content on various topics, including cryptocurrencies, AI, technology and regulations. We do not provide financial advice. Cryptactive investments are high risk and may not be adequate for all. Investigate, consult an expert and verify the applicable legislation before investing. I could lose all its capital.

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