Bitcoin News Today: Trump to Sign Order Penalizing Banks for Crypto and Conservative Bias

The U.S. administration is preparing an executive order targeting banks that engage in discriminatory practices against cryptocurrency firms and conservative clients, according to multiple reports [1][2][3]. The directive aims to address what has been described as widespread de-banking of politically affiliated individuals and crypto businesses, often attributed to heightened regulatory expectations from federal agencies [4]. The White House is reportedly considering measures that could involve investigating violations of the Equal Credit Opportunity Act, antitrust laws, and consumer financial protection regulations [5].

This move comes amid growing public and political concern over the treatment of conservative and cryptocurrency-related clients by major banks. These concerns have been amplified by recent incidents where banks have cut ties with Trump-associated entities, including the closure of hundreds of accounts linked to the Trump brand [6]. The administration’s executive order is seen as a response to these claims of bias and an attempt to create a more equitable environment for businesses in the crypto sector [7].

The draft order may empower federal regulators to penalize financial institutions found to be engaging in such practices [8]. Banks have generally justified their distance from crypto clients by citing compliance with anti-money laundering and regulatory standards. However, critics argue that this reasoning has exceeded legitimate compliance requirements and has led to unwarranted discrimination [9]. The administration has also drawn comparisons to previous policies, highlighting the ongoing challenges faced by crypto firms seeking access to traditional financial services [10].

The potential consequences of the executive order could extend beyond U.S. borders, influencing how American financial regulations shape the global environment for cryptocurrency businesses [11]. While the final version of the order has not yet been made public, reports suggest it could be signed within the coming week [12].

"The practice of de-banking crypto firms can be viewed as indirect government regulation," said David Schwartz, CTO of Ripple, highlighting concerns over regulatory overreach and its impact on market innovation [13].

Source:

[1] White House Preps Order to Punish Banks That Discriminate Against Conservatives (https://www.wsj.com/finance/regulation/white-house-preps-order-to-punish-banks-that-discriminate-against-conservatives-8af18854)

[2] Trump Prepares To Impose Penalty On Banks Found To Discriminate Against Conservatives, Crypto Firms (https://finance.yahoo.com/news/trump-prepares-impose-penalty-banks-213111695.html)

[3] Trump order to target bank discrimination, crypto de-banking (https://www.ledgerinsights.com/trump-order-to-target-bank-discrimination-crypto-de-banking-report/)

[4] Crypto Could Be Shielded By Trump's Planned Executive Order (https://www.mitrade.com/insights/news/live-news/article-3-1015254-20250806)

[5] Trump to sign order punishing banks that discriminate against conservatives (https://www.the-independent.com/news/world/americas/us-politics/trump-banks-crypto-conservatives-fine-b2802113.html)

[6] Trump Says Banks Discriminate Against Conservatives—Including Him (https://www.wsj.com/finance/regulation/trump-says-banks-discriminate-against-conservativesand-that-he-was-a-victim-c5e16bac)

[7] Trump Eyes Order to Penalize Banks Blocking Bitcoin & Crypto Firms (https://bitbo.io/news/trump-bank-bitcoin-order/)

[8] Trump Directs Federal Regulators to Penalize Banks for Crypto and Conservative Client Discrimination (https://www.ainvest.com/news/trump-directs-federal-regulators-penalize-banks-crypto-conservative-client-discrimination-2508)

[9] Trump's Draft Executive Order Would Fine Banks Over Bias Against Crypto Firms, Conservatives (https://news.bitcoin.com/report-trumps-draft-executive-order-would-fine-banks-over-bias-against-crypto-firms-conservatives/)

[10] U.S. Set to Punish Banks Over Crypto Discrimination (https://www.cryptoninjas.net/news/u-s-set-to-punish-banks-over-crypto-discrimination-could-this-trigger-the-next-bitcoin-boom/)

[13] aicryptocore.com (https://aicryptocore.com/white-house-executive-order-crypto-banks/)