tl;dr
The White House is preparing an executive order targeting banks accused of discriminating against conservative groups and cryptocurrency businesses by denying services based on political beliefs or crypto affiliations. The order mandates federal regulators to investigate violations of laws like the ...
The White House is preparing a comprehensive executive order targeting banks accused of discriminating against conservative organizations and cryptocurrency businesses. The draft order outlines potential penalties for financial institutions that deny services based on political beliefs or crypto affiliations, mandating federal regulators to investigate violations of laws such as the Equal Credit Opportunity Act and antitrust statutes.
Financial institutions found in breach could face fines, lawsuits, or be forced into legally binding reforms. Although the order's signing date remains uncertain due to ongoing administration discussions, it marks a significant move by the current administration to protect banking access for groups it sees as unfairly excluded, particularly conservatives and crypto-related entities.
Conservative groups and cryptocurrency companies have long reported discrimination by banks, including account closures attributed to political or ideological reasons. One notable incident involved Bank of America closing a Ugandan Christian organization's account, which was criticized for alleged religious discrimination, though the bank cited policy compliance rather than political motives.
The draft order also critiques banks for sharing customer data during the January 6 Capitol riot investigation, highlighting concerns that banks may act as political gatekeepers. Cryptocurrency firms have similarly struggled with banking access, claiming implicit regulatory “shadow bans,” while banks justify restrictions by citing anti-money-laundering risks and unclear regulatory guidance surrounding digital assets.
In recent months, several major banks have revised policies reaffirming non-discrimination based on politics and held discussions with Republican officials to demonstrate fairness commitments. Bank of America has welcomed regulatory clarity initiatives and pledged continued cooperation with government bodies to improve regulatory frameworks.
The executive order directs federal agencies to instruct banking regulators to remove policies encouraging banks to consider “reputational risk” when evaluating customers. Since reputational risk has been used to avoid politically sensitive clients, this shift seeks to limit banks’ power as moral arbiters—a stance previously supported by Trump administration regulators.
Additionally, the order tasks the Small Business Administration with reviewing bank treatment of loan applicants, especially those linked to SBA-backed loans, potentially impacting thousands of small businesses dependent on federal assistance.