White House to Fine Banks for Crypto-Related De-Platforming

The White House, under President Trump’s administration, is preparing an executive order to penalize banks that de-platform customers for political or cryptocurrency-related reasons, marking a new regulatory approach to protect financial access [1]. This move aims to curb practices where banks terminate services based on such criteria, which could redefine how institutions handle crypto clients and broader financial inclusion [2].

The proposed action involves imposing fines on banks engaging in biased de-platforming, with enforcement expected to be carried out by federal regulators. While no explicit details about penalty amounts or funding have been disclosed, the initiative is being developed within the President’s Working Group on Digital Asset Markets, a federal body focused on shaping digital asset regulations [1].

Industry observers note that the policy could influence crypto market dynamics, potentially affecting trading strategies and financial inclusivity. Although no direct market reaction has yet been documented, the initiative signals a broader shift in regulatory priorities, aligning with efforts to position the U.S. as a global leader in digital asset markets [3].

The executive order draws comparisons to earlier regulatory efforts like Operation Choke Point, which targeted similar de-banking practices across multiple sectors, including crypto, from 2017 to 2021. By re-establishing such a framework, the White House seeks to ensure that financial services remain accessible to individuals and businesses involved in emerging technologies like decentralized finance (DeFi) [1].

The implementation of this policy will depend heavily on the clarity and scope of the executive order, as well as the responsiveness of the financial sector to regulatory changes. As the policy develops, it is likely to draw close scrutiny from both market participants and policymakers.

Sources:

[1] White House Plans Fines for Crypto Bias in Banks

https://coinmarketcap.com/community/articles/6891552ed81833061c47ebe0/

[2] White House Seeks Penalties for Bank De-platforming

[3] Proposed Fines Could Alter Crypto Banking Practices