US President Donald Trump signed an executive order to prevent federal agencies from pressuring financial institutions cooperating with the cryptocurrency industry.
This executive order eliminates the "reputation risk" factor as a basis for increased control over the cryptocurrency industry, addressing the irrational bank account closures of businesses and individuals in the field, and receiving support from many Republican congressmen.
- Trump signs an executive order limiting federal agencies' impact on financial institutions related to cryptocurrencies.
- Eliminates "reputation risk" as a reason for increased control of the cryptocurrency industry.
- The executive order receives consensus and praise from US Congressional Republican leadership.
Why did President Trump sign an executive order to protect the cryptocurrency industry?
The executive order was signed with the aim of preventing federal agencies from implementing measures that make it difficult for financial institutions to cooperate with the cryptocurrency industry, addressing the injustice of "unbanking" - denying banking access to businesses and individuals in this field.
"Unbanking" is a cause of reduced public trust in the banking system and management, negatively affecting livelihoods, freezing income for many people, and creating unfair economic pressure on law-abiding individuals. The executive order officially eliminates "reputation risk" as a basis for applying strict regulations, which were previously used to restrict the cryptocurrency industry.
How does this executive order impact the operations of financial institutions and cryptocurrency businesses?
The executive order will help financial institutions no longer arbitrarily use "reputation risk" as a reason to stop cooperating with cryptocurrency businesses. This contributes to improving an effective and transparent operating environment for the industry, promoting development and building market trust.
Previously, many businesses and individuals in the cryptocurrency industry faced unreasonable bank account closures, causing difficulties in business operations and service development. President Trump's executive order is seen as a commitment to remove "Operation Choke Point 2.0" - a program that previously created control pressure on the industry.
"This executive order is an important step to ensure transparency and accountability in the cryptocurrency industry, while paving the way for closer cooperation between regulatory agencies and businesses."
French Hill, Chairman of the United States House Committee on Financial Services, 2024
How do US congressmen view this executive order?
Most Republican congressmen assess the executive order as an appropriate step to protect the cryptocurrency industry from unfair restrictions by federal agencies. The Chairman of the United States House Committee on Financial Services, Ms. French Hill, and Senator Cynthia Lummis both expressed encouragement, emphasizing that the executive order will enhance transparency, accountability, and create favorable conditions for industry development.
Ms. Cynthia Lummis noted that the executive order is a clear commitment to long-term sustainable development, helping cryptocurrency users and businesses feel more confident in their business operations and transactions.
"I believe this is a necessary shift, providing the cryptocurrency industry with a more transparent and fair legal environment."
Cynthia Lummis, US Senator, 2024
Frequently Asked Questions
How does the President's executive order directly affect financial institutions?
The executive order prevents federal agencies from using "reputation risk" as a reason to pressure or close accounts of financial institutions working with the cryptocurrency industry.
Why is "unbanking" a problem in the cryptocurrency industry?
"Unbanking" reduces trust in banks, affects people's income and livelihood, and creates obstacles for legitimate cryptocurrency business operations.
How was the executive order received by the US Congress?
What banking challenges did the cryptocurrency industry face before this executive order?
Many cryptocurrency businesses and individuals had their bank accounts closed or faced irrational financial cooperation restrictions, severely impacting their operations.
Does this executive order completely eliminate cryptocurrency regulations?
The answer is no, the executive order only eliminates "reputation risk" as a reason for increased control, without affecting other legitimate legal regulations.
