White House to Crack Down on Bank Bias Against Crypto Firms

The White House is set to issue a new executive order targeting bank bias against cryptocurrency firms, a move that could reshape how the financial system interacts with digital assets. The directive is expected to penalize banks that cut off customers—including those in the crypto space—based on political concerns rather than legitimate financial risk, according to a report from the Wall Street Journal [1]. The order will instruct regulators to investigate whether such actions violate existing credit, antitrust, or consumer protection laws, potentially leading to fines or other penalties for non-compliance.

The issue of bank bias has long hindered the growth of legitimate crypto businesses, as traditional financial institutions have been reluctant to provide services due to perceived reputational and legal risks [1]. Banks often cite anti-money laundering (AML) requirements and prior regulatory guidance as justification for their cautious stance. While the Trump administration once clarified that reputational risk alone should not determine regulatory decisions, the hesitation among banks has remained, limiting the availability of traditional banking services for many digital asset firms.

The potential executive order aims to address this imbalance by fostering a more inclusive financial ecosystem. It could lead to increased access to banking services for crypto firms, reduce the risk of sudden account closures, and support greater stability within the industry [1]. Analysts suggest that this shift may encourage broader adoption of digital assets and promote a more nuanced approach to risk assessment among financial institutions [1].

This move also signals a new era of heightened regulatory scrutiny for banks. Financial institutions will need to ensure that their customer offboarding policies are grounded in objective risk assessments rather than subjective biases. The evolving relationship between traditional finance and the digital asset economy will require collaboration and clear communication between both sides to adapt to these new standards.

The executive order marks a pivotal step in the ongoing efforts to integrate crypto into the mainstream financial system. By addressing discriminatory practices, the administration seeks to create a more equitable environment where all legitimate businesses—regardless of industry—have fair access to essential financial services [1]. The impact could be far-reaching, unlocking opportunities for innovation and growth in the crypto sector while reinforcing the importance of transparency and fairness in banking practices.

Source: [1] White House Executive Order: Unlocking Fair Banking for Crypto Firms (https://coinmarketcap.com/community/articles/6891714dd81833061c47ec1d/)