Trump Executive Order Targets Bank Discrimination Against Crypto Firms

President Donald Trump is preparing to issue an executive order targeting banks that allegedly discriminate against cryptocurrency companies and conservative groups by denying them financial services. The directive instructs federal banking regulators to investigate whether these institutions have violated credit or consumer protection laws by cutting off clients based on political or ideological affiliations [1]. The move is expected to impose penalties on banks found engaging in such practices, with the aim of shielding crypto firms from what the administration characterizes as politically motivated discrimination [3].

The order also calls for a review of policies linked to what critics describe as “Operation Chokepoint 2.0,” an alleged effort during the Biden administration to pressure banks into severing ties with crypto businesses and right-leaning organizations [2]. The directive aligns with broader White House policies supporting blockchain technology and seeks to establish a more predictable regulatory environment for digital assets. It complements legislative initiatives like the CLARITY Act, which aims to clarify the roles of the SEC and CFTC in regulating the crypto market [4].

The potential impact on major cryptocurrencies like Bitcoin and Ethereum is significant. Improved banking access could enhance liquidity and market stability, particularly as crypto firms face restrictions that hinder their ability to operate effectively [1]. The Small Business Administration is also directed to evaluate partnerships with banks accused of biased practices, signaling a multi-agency effort to address the issue [7]. This move reflects Trump’s broader criticism of what he calls a political bias in the financial sector, including his own alleged de-banking experiences [7].

The crypto industry has largely welcomed the initiative, with some investors describing it as a pivotal development that could push major banks to open their doors to crypto firms. One observer likened the order to the approval of Bitcoin ETFs in terms of its significance [5]. Binance’s former CEO, CZ, suggested that the executive action could also foster broader international banking access for cryptocurrencies [6]. Experts anticipate that the move may stimulate financial and technological advancements, drawing on historical patterns of how the crypto market responds to regulatory changes [3].

Sources:

[1] Trump to Sign Executive Order Shielding Crypto Firms from Bank Discrimination (https://dailycoin.com/trump-to-sign-executive-order-shielding-crypto-firms-from-bank-discrimination/)

[2] Trump Targets Bank Crackdowns on Crypto and Political Bias with New Executive Order (https://cryptodnes.bg/en/trump-targets-bank-crackdowns-on-crypto-and-political-bias-with-new-executive-order/)

[3] Trump Considers Executive Order to Penalize Banks Blocking Crypto Firms (https://coinmarketcal.com/en/news/trump-considers-executive-order-to-penalize-banks-blocking-crypto-companies)

[7] Trump Says Major US Banks 'Discriminated Against Me' as Debanking Issue Resurfaces (https://www.aol.com/finance/debanking-issue-back-trump-slams-150942843.html)