Upgrading "ancient" financial system with crypto by 2028: Is Trump on track?

Earlier this year, President Donald Trump announced a plan to modernize the U.S. financial payments system for the 21st century, placing the spotlight on the GENIUS Act. While the law exists, its operating rules are still under development. Trump praised the crypto industry, citing its rapid rise in respect and relevance, and outlined a vision to upgrade the financial system using state-of-the-art crypto technology. This move aims to reduce costs, accelerate clearance times, and secure the dollar's standing as the global reserve currency.

Trump strongly advocated for stablecoins, believing they protect and reinforce the dollar. He affirmed that with a "smart president," the dollar will not be allowed to decline. Despite the dollar losing 12% since he took office, it later rebounded 3% in subsequent months, while Bitcoin initially soared during the dollar’s decline but later fell as the dollar recovered. The interaction between these financial tools raises questions about whether Trump can maintain a strong dollar while fostering crypto advancements.

On September 18, the Treasury began formal processes under the GENIUS Act, issuing an advance notice to gather public input on licensing issuers, setting capital and liquidity standards, and defining permissible activities for banks. The act excludes the creation of a Central Bank Digital Currency (CBDC), consistent with Trump’s executive order banning CBDCs signed January 23. Despite progress, full implementation remains pending, with statutory details and final regulations expected by 2026.

Recent shifts in supervision by the OCC, Federal Reserve, and FDIC have enabled greater integration of crypto with banking, softening prior restrictions on custody and stablecoin activities. The OCC has issued bulletins clarifying permissible digital asset activities, aligning with GENIUS standards. Industry research, such as that by McKinsey, highlights stablecoins as a tool for tokenized cash settlements rather than direct consumer replacements, suggesting adoption will depend on distribution networks and last-mile integrations.

Legacy payment systems like FedNow, RTP, and Swift GPI are evolving to close the performance gap with crypto-based alternatives. Key crypto advantages include 24/7 uptime, seamless cross-border settlements, and enhanced treasury efficiency. Meanwhile, companies like Visa and Mastercard are piloting integrations that support stablecoin transactions, bridging crypto into traditional payment infrastructure without altering consumer experiences.

The GENIUS framework supports stablecoins backed entirely by U.S. Treasury bills and cash, creating consistent demand for government debt. This expands the dollar’s global distribution and stabilizes liquidity. Competing models, like tokenized bank deposits integrated into established payment systems, challenge public stablecoin growth. The eventual outcome will depend on U.S. regulations around bank access, capital, and liquidity standards, as well as the pace of industry adoption.

Although Trump has set a clear policy direction, including banning CBDCs and streamlining crypto settlement rails, legacy systems like FedNow and Swift GPI continue to grow rather than being fully replaced. With GENIUS regulation timelines extending to 2026 and beyond, real progress thus far includes policy momentum, live pilots by card networks, and clearer guidance for banks. However, widespread adoption and measurable settlement flows using stablecoins remain distant goals, marking this vision as a work in progress rather than a complete transformation.