President Donald Trump is preparing to sign a new decree targeting regulations that have influenced the degradation of cryptography as part of the administration of Joe Biden.
The reports indicate that the order will seek to cancel policies related to what industry leaders call “the Choke Point 2.0 operation”.
Trump to end the crypto
This initiative, a reference to a repression of the Obama era against salary lenders and firearm merchants, would have aimed to prevent crypto companies from obtaining banking services.
The Trump administration intends to end these restrictions, which made banks focused on crypto difficult.
“The Trump administration is apparently preparing to sign an executive decree which could cancel certain federal reserve policies that have prevented cryptographic banks from accessing so -called masters. It would be a big problem for cryptocurrency banks like the Custodia Bank and Caitlin Long, which currently fight on the Federal Reserve in court for this same question, “wrote Eleanor Terrett.
The complete details of the decree are still being finalized. It should fight against the policies of the federal reserve on the granting of main accounts.
In particular, these accounts allow banks to carry out transactions directly with the Fed. During the presidency of Biden, the friendly cryptographic banks such as the guards were faced with repeated refusals on the holding of these accounts.
In short, the regulations indirectly prevented them from accessing key financial infrastructure. If these policies change, it could considerably reshape the American digital asset industry.
“This is notable because the Fed and the FDIC have not yet canceled the anti-Crypto directives, despite the comments last month of the president of the federal reserve, Jerome Powell, that he was struck by the growing number of apparent crypto debannage and that the Fed would examine a new goal,” Eleanor Terrett wrote.
However, the Federal Reserve operates independently and is not required to follow the guidelines of the White House or Congress.
Any attempt to influence its policies could face a decline in the Central Bank officials.
If he is signed, it will be the third executive decree linked to Trump’s crypto since his return to the post. His first order, published on January 23, created a presidential working group on the digital asset markets.
Meanwhile, his second order has established a Bitcoin reserve of the US government as well as a distinct digital stock stock.
Despite these movements, the recent summit of the cryptography of Trump’s White House left leaders of frustrated industry. Many have estimated that the discussions lacked substance and its plan for a Bitcoin reserve failed to raise the feeling of the market.
Instead of buying a new bitcoin, the administration intends to use assets already entered in criminal cases.
In addition, wider economic policies have added to market instability. Recent prices imposed on China, Mexico, Canada and Potentially on the EU have shaken traditional markets.
Institutional investors reacted by drawing funds from ETF Bitcoin and Etfeum during last week.
As a result, Bitcoin fell below $ 80,000 for the first time in four months. Ethereum also fell to $ 1,870, its lowest level since November 2023.
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