Trump Aims to Penalize Banks for Discriminating Against Crypto Firms

The Trump administration is reportedly preparing an executive order to penalize banks that discriminate against conservative groups and cryptocurrency firms, according to a report [1]. The directive, which could be signed as early as this week, would empower regulators to investigate whether financial institutions have violated the Equal Credit Opportunity Act, antitrust laws, or consumer financial protection regulations [1].

The proposed order reflects a shift in approach from the Biden administration, during which tensions between banks and the cryptocurrency industry intensified. For example, Coinbase Global Inc. (COIN) sued the Federal Deposit Insurance Corporation (FDIC) in 2023 for its alleged influence over banks to avoid offering cryptocurrency-related services. An FDIC spokesperson previously stated that Coinbase executives misinterpreted the agency’s guidance [1].

Under the new administration, regulatory dynamics appear to be evolving. Earlier this year, the Securities and Exchange Commission (SEC) repealed a cryptocurrency accounting directive that had previously restricted banking institutions from offering custodial services for digital assets. This move followed bipartisan support in both the Senate and House to overturn the directive, though the effort was vetoed by the Biden administration [1].

The SEC also recently launched "Project Crypto," an initiative aimed at updating securities regulations to better accommodate blockchain-based financial systems [1]. Meanwhile, COIN’s stock rose 1.11% to $318.17 during Monday’s regular trading session and currently ranks higher on the Momentum and Value rankings [1].

The executive order is expected to mark a significant shift in how the U.S. government addresses perceived discrimination in financial services and could signal a more supportive stance toward the cryptocurrency industry under the Trump administration [1].

Source: [1] Trump Prepares To Impose Penalty On Banks Found To Discriminate Against Conservatives, Crypto Firms: Report (https://www.benzinga.com/news/politics/25/08/46847545/trump-prepares-to-impose-penalty-on-banks-found-to-discriminate-against-conservatives-crypto-firms-report?utm_source=coingecko&utm_campaign=partner_feed&utm_medium=partner_feed&utm_content=site)