Trump Snubs Fed, FDIC by Excluding Them from Crypto Task Force

President Donald Trump has formed a new crypto working group, but without the Federal Reserve or FDIC. This move has sparked strong reactions within the industry. Some see it as a positive change, a way to encourage innovation. Regardless, the exclusion of these two powerful agencies is raising important questions about crypto regulation.

Breaking Away from the Past

Caitlin Long, CEO of Custodia Bank, was the first to point out the exclusion. She took to X on January 23, stating that both the Fed and FDIC deserved to be left out. Long claimed the agencies had tried to block her company’s growth. 

Under the Biden administration, both regulators were accused of limiting the crypto sector’s progress. The FDIC was especially criticized for pressuring traditional banks to cut ties with crypto companies. 

A Pro-crypto Agenda: Executive Order’s Key Mandates

This initiative, known as Operation Choke Point 2.0, led to the closure of crypto-friendly banks like Silvergate and Signature in 2023. Critics argue that regulators used these tactics to prevent the crypto industry from thriving.

Trump’s executive order lays out a clear plan for handling digital assets. Agencies like the Treasury Department and SEC will review current crypto regulations. They will submit recommendations within 30 days. 

One of the key moves is a ban on creating a Central Bank Digital Currency (CBDC) in the U.S. This decision sharply contrasts with the previous administration’s approach, signaling Trump’s commitment to a free-market crypto environment.