A new executive order said to be in development by the Trump administration is intended to sanction banks that discriminate against holders or firms of cryptocurrency on the basis of political or religious affiliation.
In his X post, Paul Barron states the executive order, described as a big stimulator on par with Bitcoin ETF approval, will force big US banks to serve crypto firms and right-wing organizations without prejudice.
The move is a sensational White House intervention in the operations of the banking sector and will be sure to put pressure on greater crypto adoption in mainstream finance.
Banks May Face Fines Under New Federal Regulatory System
A copy of the executive order, which was obtained by The Wall Street Journal, directs financial regulators to investigate banks for potential violations of federal statutes, including the Equal Credit Opportunity Act, antitrust laws, and consumer protection statutes.
Banks found guilty of discrimination will be slapped with substantial monetary fines, consent decrees, or other regulatory sanctions.
Even though the draft makes no reference to the names of institutions, it refers to high profile cases such as Bank of America’s alleged closing down of a Ugandan Christian charity’s account.
While the bank provided logistical explanations, the incident has fueled allegations of politically or religiously motivated discrimination in banking.
Federal Reserve Opens Regulatory Path for Crypto Banks
The executive order comes closely on the heels of the US Federal Reserve making a significant move on April 25 by withdrawing its limit on crypto-related policies implemented in 2022 and 2023.
The previous guidelines had discouraged banks from engaging in digital asset services and dollar-backed token initiatives.
As part of a collective push in coordination with the OCC and FDIC, the Fed rollback is a coordinated federal stance encouraging innovation and blockchain adoption by the financial sector.
The policy shift now enables collaboration between old banks and crypto firms, the development of blockchain solutions, and engagement in tokenized finance, which is comforting to both crypto enthusiasts and institutional investors.
Also Read: Norway’s BiorBank Prepares to Launch Crypto-Centric Banking App
Conservatives and Crypto Firms Accuse Targeted Banking Discrimination
The impending executive order is being written in reaction to years of gripes from crypto companies and conservative groups that they were systematically excluded from fundamental banking services in earlier administrations.
The groups claim banks, beset by regulatory or political pressure, either closed their accounts or refused to issue fundamental financial instruments.
However, banks are known to have regularly defended their actions, invoking anti-money-laundering (AML) obligations and financial risk assessments.
Yet the increasing volume of complaints, especially from crypto companies since the Biden administration, has added pressure to calls for more open, fair rules.
Also Read: Circle CEO Anticipates U.S. Executive Orders To Promote Crypto Adoption In Banking Sector
Crypto CEOs and Leaders Positively Receive the Move
The news of the executive order was greeted warmly by the cryptocurrency community.
Binance co-founder CZ penned on X that “U.S. banks once blocked crypto transactions, especially fiat-to-crypto, for years, but that this order may lead to international banking pro-crypto.”
Similarly, Circle CEO Jeremy Allaire already predicted that the Trump administration would act to unblock the use of crypto in the banking system.
He signaled that future executive orders would authorize banks to trade in cryptocurrencies and offer crypto investment products to high-net-worth individuals, events which now appear probable.
Also Read: Crypto.com Eyes Banking Pillar Development in 2025, Aims At More Cash Accounts Enhancements
Banks Reverse Course Under Regulatory Threat and Political Scrutiny
With the specter of increasing political scrutiny and potential executive action hanging over them, a number of banks have begun preemptively revising their own internal guidelines.
Others have met with Republican state attorneys general to demonstrate their commitment to equitable practice.
Others have issued public statements that political opinion and participation in cryptocurrencies do not factor into customer account decisions.
A Bank of America representative recently endorsed the call for regulatory clarity, stating the bank has made suggestions to the administration and is committed to working with both Congress and regulators in streamlining the banking system.
With the executive order nearing completion, the financial industry gears up to confront a new reality of forced neutrality and increased interaction with the crypto environment.