The cryptocurrency landscape is undergoing significant regulatory and institutional shifts, with two major developments poised to reshape the industry. Former U.S. President Donald Trump is preparing an executive order to lift banking restrictions on crypto firms, while Deutsche Börse is launching a crypto custody service through Clearstream to facilitate institutional investment in digital assets. These moves highlight the growing momentum behind digital finance and the ongoing struggle for regulatory clarity.
Trump’s Plan to End Crypto Banking Restrictions
Donald Trump is set to sign an executive order aimed at reversing banking restrictions that have hindered cryptocurrency businesses from accessing essential financial services. This initiative seeks to dismantle what industry leaders call Operation Choke Point 2.0—a set of policies that have effectively barred crypto banks from integrating with the traditional financial system.
The order will instruct regulatory agencies to ensure that legitimate crypto firms can access banking services on par with other businesses. A key provision could be the push for granting Federal Reserve master accounts to crypto banks, allowing them direct transactions with the Federal Reserve rather than relying on intermediaries. Under the Biden administration, banks such as Custodia faced repeated denials for such accounts, limiting their operational scope.
While the move is expected to be welcomed by the crypto sector, regulatory resistance is likely. The Federal Reserve operates independently and may push back on directives that could impact financial stability. If successfully implemented, however, the executive order could mark a turning point for crypto banking in the U.S., encouraging innovation and solidifying the country’s position in the digital asset economy.
Deutsche Börse’s Institutional Crypto Custody Service
On the institutional front, Deutsche Börse Group has announced the launch of a new crypto custody solution through its post-trade services arm, Clearstream. Set to go live in April, the service will enable institutional investors to securely store and settle cryptocurrencies, initially supporting Bitcoin and Ethereum, with plans for further expansion based on client demand.
The initiative is backed by Crypto Finance, a Deutsche Börse subsidiary, and aligns with the company’s broader strategy to integrate digital assets into mainstream financial markets. Clearstream’s offering follows the January approval of the Markets in Crypto-Assets Regulation (MiCAR) license for Crypto Finance, ensuring compliance with European regulatory standards.
Jens Hachmeister, Head of Issuer Services & New Digital Markets at Clearstream, emphasized the importance of the move:
“Offering crypto custody is the next step on Clearstream’s journey to digitize financial markets. The institutional-grade, regulatory-compliant solution offers clients easy and quick access to new asset classes while enjoying the best features of our trusted and established post-trading systems.”
Deutsche Börse has been steadily expanding its footprint in the cryptocurrency sector since acquiring a majority stake in Crypto Finance AG in 2021. In March 2024, it launched the Deutsche Börse Digital Exchange (DBDX), a regulated spot trading platform that facilitates institutional trading of Bitcoin and Ethereum while providing custody and settlement services.
Clearstream’s new service will allow institutional clients to access cryptocurrency custody and settlement through their existing accounts with the International Central Securities Depository (ICSD), eliminating the need for additional technical integrations.
Stijn Vander Straeten, CEO of Crypto Finance Group, highlighted the company’s competitive position with this offering:
“This offering puts Deutsche Börse Group in a position second to none in the digital assets industry. We are now not only covering native services via direct interface but also leveraging traditional rails that are implemented with most financial market participants, meaning a very convenient offering to any financial institution who wishes to enter the crypto industry.”
The collaboration reinforces Deutsche Börse Group’s commitment to digital asset integration within traditional financial markets while maintaining high regulatory and security standards.
The Broader Impact on Crypto Markets
These parallel developments reflect a significant shift in the global approach to cryptocurrency. Trump’s executive order, if effectively enforced, could bolster the crypto industry in the U.S. by removing banking barriers and fostering financial inclusion. Meanwhile, Deutsche Börse’s new service reinforces the institutional adoption of digital assets in Europe, providing a compliant and secure gateway for large-scale investment.
Despite these advancements, the broader crypto market remains volatile. Bitcoin and Ethereum prices have fluctuated due to macroeconomic concerns, including trade policies and inflation fears. While regulatory clarity and institutional involvement are positive signals, market stability will ultimately depend on how these policies unfold in practice.
As governments and financial institutions continue to shape the future of cryptocurrency, the coming months will be crucial in determining whether these initiatives lead to long-term growth and innovation in the digital asset sector.
