Biden's executive order may fine banks for discriminating against crypto firms and conservative groups.

Biden's executive order may fine banks for discriminating against crypto firms and conservative groups.

The Biden administration is poised to issue an executive order that could impose penalties on banks for discriminatory practices against cryptocurrency firms and conservative groups. The directive aims to ensure equal access to financial services by addressing "debanking" under consumer protection and antitrust laws [1][2][3].

The executive order, reported to be ready for signing this week, seeks to penalize financial institutions that cut off services to clients based on political beliefs or industry type. This could result in financial penalties, consent decrees, or other disciplinary actions if institutions are found to have violated consumer protection laws, the Equal Credit Opportunity Act, or antitrust regulations [4][5].

Previously, banks have justified account closures as a response to anti-money laundering (AML) concerns and reputational risk, especially in relation to the crypto industry. Prominent figures such as Coinbase CEO Brian Armstrong and Frax Finance founder Sam Kazemian have reportedly faced account closures from major banks like JPMorgan Chase. These incidents have drawn attention to the growing tension between traditional financial institutions and emerging digital asset businesses [6].

The executive order marks a clear departure from the regulatory environment under Operation Chokepoint 2.0, a policy seen as limiting crypto access during the Biden administration. The Trump-era administration had previously moved to ease such restrictions, including halting the assessment of “reputational risk” in customer relationships, a move welcomed by crypto advocates. The current initiative aligns with this stance, signaling a renewed effort to prevent perceived bias in banking services [7].

Industry observers note that banks often resist cryptocurrencies due to the technology’s decentralized nature, which challenges traditional models of financial control and lending. As stablecoins and other crypto assets grow in popularity, banks have shown a cautious, if not hostile, attitude toward the sector — despite the potential profitability of related services [8]. The new directive seeks to force a reassessment of these practices, compelling institutions to justify account closures on legal or regulatory grounds rather than ideological or business-based preferences.

Bank of America has stated it is working with the administration and Congress to refine the regulatory framework, emphasizing the need for balance between compliance and innovation. While the order does not name specific banks, its implications are far-reaching, potentially reshaping how financial institutions interact with crypto firms and politically active clients [9].

Sources indicate the order could still face delays or adjustments before finalization, but the administration’s intent is clear: to ensure banks operate without political bias and provide equal access to financial services. This could lead to broader shifts in the financial industry, particularly in how banks approach digital assets and politically aligned organizations.

References:
[1] White House Preps Order to Punish Banks That ... (https://www.wsj.com/finance/regulation/white-house-preps-order-to-punish-banks-that-discriminate-against-conservatives-8af18854)
[2] New Executive Order to Punish US Banks for Dropping ... (https://cryptopotato.com/new-executive-order-to-punish-us-banks-for-dropping-crypto-customers/)
[3] Trump's White House Reportedly Drafts Order To Punish ... (https://stocktwits.com/news-articles/markets/equity/trump-s-white-house-reportedly-drafts-order-to-punish-banks-for-political-bias/chrLO3GRdc4)
[4] Dow Jones Top Financial Services Headlines at 12 AM ET (https://www.morningstar.com/news/dow-jones/2025080567/dow-jones-top-financial-services-headlines-at-12-am-et-white-house-preps-order-to-punish-banks-that-discriminate-against-conservatives-this)
[5] White House preps order to punish banks that discriminate ... (https://www.livemint.com/global/white-house-preps-order-to-punish-banks-that-discriminate-against-conservatives-1175462598.html)
[6] 'We Are Being Taxed:' Gold Bull Peter Schiff Warns Trump's ... (https://stocktwits.com/news-articles/markets/equity/we-are-being-taxed-gold-bull-peter-schiff-warns-trump-s-tariffs-punishing-us-consumers/chrLXTKRdcB)
[7] Trump to punish banks for discriminating against ... (https://therightscoop.com/breaking-report-trump-to-punish-banks-for-discriminating-against-conservatives/)
[8] Banks Still Hate Crypto (https://coinmarketcap.com/community/articles/689196d301aecf7f739b4b9c/)
[9] The Wall Street Journal