The White House is preparing an executive order that would penalize banks for discriminating against customers based on their political views or for working with digital asset firms. The Wall Street Journal reported that the order could be signed this week.
According to the report, the order directs bank regulators to investigate whether any financial institutions have violated laws such as the Equal Credit Opportunity Act or antitrust laws. Violators could face monetary penalties and other disciplinary actions.
This move follows numerous complaints from cryptocurrency companies that they have been denied banking services under the Biden administration. While banks claim these decisions are based on legal and regulatory risks, particularly anti-money laundering compliance, crypto industry leaders argue they have been unfairly targeted.
A spokesperson for Bank of America told the Journal that the bank has provided detailed proposals and will continue to work with the government to improve the regulatory framework.
The executive order marks a shift from previous banking oversight. The Trump administration is positioning itself as a defender of the crypto industry against alleged bias from the financial sector. Several prominent figures in the crypto space, including Coinbase CEO Brian Armstrong and Frax Finance founder Sam Kazemian, have publicly stated that their accounts or the accounts of others have been closed by major banks due to their involvement with digital assets.
