The White House is reportedly preparing an executive order aimed at penalizing banks found to be discriminating against cryptocurrency companies and conservative groups. The directive, expected to be signed as early as this week, seeks to address long-standing allegations of "debanking" practices, where financial institutions deny or terminate services based on political or ideological grounds. This move follows persistent complaints from both the digital asset sector and conservative organizations regarding unfair access to financial services.
The proposed executive order will instruct federal bank regulators to investigate whether financial institutions have violated existing laws, including the Equal Credit Opportunity Act, antitrust statutes, or consumer financial protection laws. Banks found in violation could face significant monetary penalties and other disciplinary measures. This action signals a heightened federal scrutiny over the politicization of financial services and aims to ensure equitable access for all entities.
For years, conservative groups have claimed that major banks have denied them services due to their political or religious affiliations. One notable instance cited in reports involved Bank of America, which was accused in 2023 of closing the accounts of a Christian organization operating in Uganda. Former President Trump has also recounted personal experiences of being "debanked," including by JPMorgan Chase.
Similarly, cryptocurrency firms have alleged that they were unfairly excluded from traditional banking systems, particularly during the prior administration, through what some describe as "Operation Choke Point"-like tactics. Industry executives have consistently argued that banks, under regulatory pressure, have been reluctant to provide services to crypto businesses, hindering innovation and growth in the digital asset space. The new order aims to foster a more inclusive financial environment for these companies.
The banking industry is closely monitoring the situation, with some institutions already updating their policies to explicitly prohibit discrimination based on political views. However, legal experts anticipate potential challenges to the executive order, questioning the executive branch's authority to override private business decisions without explicit congressional approval. The order underscores the administration's commitment to addressing perceived biases within the financial sector and promoting fair competition.