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The order is on its way, says a White House official.
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The measure could have an impact on the Federal Reserve policies.
The US president Donald Trump plans to sign an executive order this week to open the banks to Bitcoin companies and reverse the anti-descriptomoned measures imposed by the administration of Joe Biden, according to sources from the press of that country.
The Decrypt local medium reports that the Executive Order will try to dismantle the rules associated with Operation Chokepoint 2.0, an alleged plot executed during the Biden government To deny banking services to cryptocurrency companies. This measure arrives after months of criticism from the industry, which denounced an undercover financial boycott.
Operation Chokepoint 2.0 was a term coined by the cryptocurrency sector to describe a strategy that limited industry access to the banking system in the United States. The regulatory agencies would have pressed banks to move away from Bitcoin -related companies and other digital assets, justifying the action for alleged financial and reputational risks.
Last Friday, during the first Cryptocurrency Summit in the White House, Trump announced that his government would end Operation Chokepoint 2.0. As Cryptonoticias reported, the president said that, under the Biden administration, banks were forced to close business and entrepreneurs of the sector, blocking transfers and using the government “as a weapon against the industry.”
BO HIES, Executive Director of the Presidential Working Group on Digital Assets of the White House, confirmed that the executive order is in process. Hines avoided giving details, but said the document is real and is being prepared. HIES also reiterated that the Trump administration seeks to eliminate all practices linked to Operation Chokepoint 2.0.
It is likely that the executive order that Trump will sign this week impact the Federal Reserve (FED) policies regarding the master accounts. All banks authorized by the federal government have master accounts, that allow direct payments with the Fed and access to their services. These accounts are essential for a bank to provide significant services to customers throughout the country. During the Biden government, the Fed persistently denied these accounts to banks focused on cryptocurrencies.
On the other hand, if Trump really signs this order in the next few days, it would be the third dedicated to cryptocurrencies since his return to office. As Cryptonotics reported, the first order, issued in January, focused on ordering the creation of a digital asset reserve, among other topics. The second, signed last week, prioritized the formation of a strategic Bitcoin reserve. This third order would consolidate Trump’s approach towards a regulation favorable to the sector.
The possible signature of this executive order comes after a recent change in the regulatory panorama. The US Currency Controller Office gave green light to the country’s banks to venture into the cryptocurrency ecosystem.
The allowed activities include custody, purchase, sale and loans, provided that safety and financial stability regulations are met. This guarantee marks a contrast to previous restrictions and align to the banking system with the priorities of the Trump administration.