Traditional banks just got handed a homework assignment they can’t ignore. President Trump signed an executive order on May 19, 2026, mandating a government review of rules affecting fintech and crypto partnerships with banks, and BitGo’s director for Latin America, Luis Ayala, is calling it a “wake-up call” for institutions still sitting on the sidelines.

In an interview with CriptoNoticias, Ayala framed the executive order as a forcing function.

“This forces banks to transform faster and to take Bitcoin and blockchain seriously.”

The order directs regulators to facilitate digital asset inclusion in traditional finance and payment systems. That includes opening the door for digital asset companies to access Federal Reserve master accounts, the kind of privileged infrastructure that has historically been reserved for traditional financial institutions.

The Clarity Act adds regulatory teeth

The executive order didn’t arrive in a vacuum. One week prior, the Senate Banking Committee advanced the Clarity Act, a piece of legislation that tackles one of the most persistent headaches in crypto-banking relations: regulatory ambiguity.

The Clarity Act authorizes banks to engage with decentralized ledger technology without counting custody assets as liabilities on their balance sheets. In English: banks can hold Bitcoin and other digital assets for clients without those holdings wrecking their capital ratios.

This matters because the previous accounting treatment, which required banks to record custodied crypto as liabilities paired with offsetting assets, made digital asset custody look far more expensive and risky on paper than it actually was.

Latin American banks are already moving

While US banks digest the new regulatory landscape, their Latin American counterparts aren’t waiting around. According to Ayala’s comments, several major institutions in the region are actively exploring digital asset strategies.

The list includes some of the biggest names in Latin American finance: BCP Peru, Santander, Tower Bank, Itaú, BTG Pactual, and Banco de Crédito de Bolivia. BitGo is positioning itself as the infrastructure partner these banks need, specializing in institutional-grade digital asset custody and compliance.

When US regulatory policy shifts this dramatically toward crypto adoption, the ripple effects reach every banking system with ties to dollar-denominated finance. Latin American banks that serve clients with cross-border needs, remittance flows, or dollar-denominated accounts now have even more reason to build digital asset capabilities.

What this means for investors

Access to Federal Reserve master accounts for digital asset companies would be transformative. Master accounts allow institutions to settle payments directly through the Fed’s systems, bypassing the correspondent banking relationships that have historically served as chokepoints for crypto firms.

There’s a risk dimension investors shouldn’t overlook, though. Executive orders can be reversed by subsequent administrations, and the Clarity Act still needs to complete its legislative journey through the full Senate and House. Regulatory clarity built on executive action alone has a shorter shelf life than clarity enshrined in statute.