Trump Prepares Executive Order to Protect Crypto Firms from Banking Discrimination

U.S. President Donald Trump is reportedly preparing to sign a major executive order to protect crypto firms from banking discrimination. This move is seen as a clear follow-through on his pro-crypto campaign promises. The upcoming executive order would bar banks from refusing services to digital asset firms based solely on their industry or perceived political leanings. Trump’s Domestic Policy Council, led by Vince Haley, is expected to lead the drafting process. The order could have far-reaching consequences for crypto companies.

This move follows growing pressure from conservative states, which allege that major U.S. banks have discriminated against sectors like cryptocurrency, firearms, and energy, not for financial reasons, but due to ideological bias. In February, Democratic Senator Elizabeth Warren also called on the Donald Trump administration to investigate banks accused of denying services based on political affiliation or industry type. She said, “For me this is straightforward: It doesn’t matter who you voted for, what you believe in, or the origin of your last name, people shouldn’t be arbitrarily denied access to their banks, locked out of their accounts or stripped of their banking privileges.”

However, in response to the allegations, executives from major banks have already engaged in discussions with officials from various states to address the raised concerns. The move is seen as a direct response to what many in the crypto industry call “Operation Chokepoint 2.0”, an alleged coordinated effort by the Joe Biden administration to cut off crypto firms from banking services. During that time, at least 30 tech and crypto entrepreneurs were reportedly denied access to banking. The sudden collapse of three crypto-friendly institutions in March 2023 further fueled concerns of a systemic crackdown.

Now, with Trump back in office, federal officials appear poised to reverse course by introducing protections for digital asset businesses. If enacted, the directive could restore crypto firms’ access to essential banking infrastructure and foster a more supportive environment. It may also attract institutional investors by signaling a friendlier regulatory approach. However, the proposal is expected to trigger legal and political debates over the extent to which the federal government can direct private banking practices.

Despite the Trump administration’s pro-crypto stance and regulatory rollbacks, concerns around crypto debanking are far from resolved. Trump has pledged to end Operation Chokepoint 2.0 and ease SEC rules. Still, crypto firms remain uneasy, as banking access challenges continue to linger. Interestingly, Federal Reserve Chair Jerome Powell recently affirmed that banks are allowed to serve crypto firms, as long as they comply with regulatory guidelines. Powell said, “Banks get to decide who their customers are and that’s not our decision. Banks are free to provide banking services to the crypto industry and crypto companies.”

While this offers cautious optimism, it’s not yet a complete solution. Still, the alignment between Trump’s administration and the Fed signals a rare moment of shared direction on crypto policy. The executive order, if signed, could significantly boost crypto stability and attract institutional adoption in the U.S. by providing a clearer regulatory framework and reducing the risk of arbitrary banking discrimination. However, the implementation and effectiveness of this order will depend on how it is executed and the responses from both the banking sector and the crypto industry.