The new executive order in the United States will penalize banks that discriminate against cryptocurrency companies, opening up significant opportunities for the digital finance industry.
This helps reconnect the relationship between banks and cryptocurrency companies, promoting institutional capital flows into the market, facilitating long-term development for the ecosystem.
MAIN CONTENT
Banks may be fined if they refuse transactions with cryptocurrency companies as required by the new executive order.
This order will boost liquidity and institutional investor participation in the cryptocurrency market.
Positive impact on Bitcoin, XRP, stablecoins, and cryptocurrency startup operations.
How will banks be affected by the new executive order?
The upcoming executive order will expose U.S. banks to penalties if they discriminate against cryptocurrency companies.
Paul Barron, a cryptocurrency analyst and investor, emphasizes that banks will not be able to ignore the operations of cryptocurrency companies, opening access channels for institutional capital on a large scale. According to the leaked draft, regulatory agencies will consider compliance with the Equal Credit Opportunity Act, antitrust laws, and consumer protection.
Violating banks may be fined and face oversight or administrative penalties. The Small Business Administration will also oversee the implementation of secured SBA loans to ensure fairness for all customers.
"In the past, U.S. banks often blocked transactions related to cryptocurrency, but this order will open doors for global access to banking services."
Changpeng Zhao, CEO of Binance, 2024
Why do cryptocurrency investors view this executive order as a turning point?
The cryptocurrency community welcomes this order positively as it limits the potential for debanking of digital currency companies.
Analysis shows that compliance with the order will require major banks to fully serve cryptocurrency companies, creating stronger liquidity and increasing market reliability. This is a continuation of the open policies of the Trump administration aimed at promoting cryptocurrency, including the proposal of Bitcoin in the 401(k) retirement plan along with a strategic Bitcoin reserve strategy.
The order also prevents pressure on banks to deny services to cryptocurrency businesses, which has previously been reflected in the concerns of 'Operation Chokepoint 2.0'.
How does the new executive order affect Bitcoin, XRP, and the cryptocurrency market?
The enforcement of the executive order is expected to bring direct benefits to Bitcoin, XRP, and stablecoins by expanding access to banking services.
Bitcoin could attract new institutional capital, increasing positive volatility.
XRP and stablecoins will have greater ease in using banking payment systems.
Cryptocurrency startups can easily raise funds and operate due to restrictions on illegal account closures.
Investors are quickly shifting from a cautious mindset to an optimistic one.
In previous years, many companies in the cryptocurrency industry continuously faced challenges as banks restricted accounts. The executive order forces banks to maintain or reopen accounts, which could unleash institutional capital, enhancing overall market liquidity.
What steps will happen next?
The executive order is expected to be signed this week, with many agencies like the FDIC, Department of Justice, OCC, and SBA starting to conduct inspections and monitor implementation.
Businesses and cryptocurrency investors are cautiously optimistic, as the order has the potential to reshape the collaborative environment between traditional finance and cryptocurrency companies. In particular, traditional investors and startups are waiting for positive signals to restore the banking-cryptocurrency ecosystem.
Frequently Asked Questions
What will the new executive order change for banks and cryptocurrency?
This order helps penalize banks that discriminate against cryptocurrency companies, forcing banks to serve fairly and expand services for the digital currency sector.
Why do investors expect this executive order to boost liquidity?
The executive order may alleviate the pressure of excluding banking services, facilitating institutional capital flows into the cryptocurrency market more effectively.
What advantages do Bitcoin, XRP, and stablecoins gain from the executive order?
Bitcoin has the opportunity to attract institutional capital, while XRP and stablecoins will have easier access to banking, improving liquidity and transactions.
What will happen if banks violate the executive order?
Violating banks may face fines, oversight measures, or administrative penalties under anti-discrimination and consumer protection laws.
When will the executive order officially take effect?
The order is expected to be signed this week, and regulators will soon begin to enforce and monitor its implementation.
Source: https://tintucbitcoin.com/lenh-trump-co-the-ep-ngan-hang-nhan-tien-dien-tu/
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