05.08.2025 05:44
The Trump administration is poised to issue a sweeping executive order cracking down on banks that terminate relationships with cryptocurrency firms or individuals based on discriminatory practices. This decisive action, reported by the Wall Street Journal, aims to prevent banks from unjustly severing ties with crypto businesses or individuals for political reasons or simply because they're involved in the digital asset space.
The forthcoming order will empower banking regulators to thoroughly investigate potential violations of several key laws, including the Equal Credit Opportunity Act, antitrust legislation, and consumer financial protection statutes. Should violations be discovered, the penalties for offending banks will be significant, ranging from substantial monetary fines to legally binding consent decrees and other disciplinary actions. The White House is reportedly aiming to finalize and sign the executive order within the week.
This executive order marks a dramatic reversal from policies implemented during the Biden administration. Previously, many cryptocurrency companies reported being unfairly denied banking services, a situation often attributed to a perceived “reputational risk” associated with the industry. The Trump administration, however, views this as unwarranted discrimination and seeks to rectify the situation. The administration intends to prevent what it views as a discriminatory practice, protecting crypto businesses from what it sees as biased actions by the financial industry.
The reported move builds upon an earlier decision under the Trump administration to cease the assessment of "reputational risk" from clients, a decision that proved beneficial to the crypto industry. This new executive order is a clear departure from the approach taken under Operation Chokepoint 2.0 during the Biden era, firmly establishing the Trump administration's stance as a staunch defender of crypto interests against purported industry prejudice. This is in direct response to numerous instances where crypto experts and companies were unjustly cut off from banking services. The administration's aim is to curtail this practice definitively, citing incidents such as JPMorgan Chase's closure of accounts linked to Coinbase CEO Brian Armstrong in December 2023 as prime examples of discriminatory practices needing immediate correction. Banks have maintained their actions were justified by concerns related to anti-money laundering compliance and other regulatory factors, but the administration clearly disagrees. A Bank of America spokesperson confirmed ongoing cooperation with the administration and Congress on improving the regulatory framework.
