U.S. President Donald Trump is expected to sign an executive order this week aimed at protecting cryptocurrency companies and conservative groups from what he calls politically motivated banking discrimination.
According to a Wall Street Journal report citing sources familiar with the matter, the order directs federal banking regulators to investigate whether banks have unfairly denied services to crypto firms or right-leaning organizations. Banks found to have violated credit or consumer protection laws could face penalties and enforcement action.
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The draft order also instructs agencies to review internal policies that may have encouraged debanking and calls on the Small Business Administration to evaluate partnerships with banks accused of bias.
Moves Toward Clearer Crypto Rules
If enacted, the executive order is Trump’s strongest response yet to what critics call “Operation Chokepoint 2.0”, an alleged Biden-era campaign where federal regulators pressured banks to cut off services to cryptocurrency firms and conservative groups.
The executive order complements ongoing efforts to create a clear and unified regulatory structure for digital assets.
This involves measures such as the CLARITY Act, which seeks to define the responsibilities of the SEC and CFTC in regulating crypto markets, along with plans to implement more precise federal regulations for crypto registration, custody, and trading.
The crypto industry has welcomed the move enthusiastically. Investor Paul Barron called it the biggest catalyst since the approval of Bitcoin ETFs, emphasizing that the executive order could compel major banks to open their doors to crypto firms, potentially unleashing a flood of institutional investment into the sector.
Meanwhile, Binance’s former CEO CZ noted that while U.S. banks have long blocked crypto-related transactions, the new executive order could unlock banking access for cryptocurrencies on a global scale.
Why This Matters
If signed, the executive order could improve banking access for crypto firms, potentially driving increased investment and growth in the sector.
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Many banks view crypto companies as high-risk due to regulatory uncertainties, compliance costs, and concerns over fraud or money laundering, leading some to deny banking services.
It could direct regulators to investigate discriminatory banking practices, enforce penalties, and ensure crypto firms have fair access to banking services.
The CLARITY Act is proposed legislation aiming to clearly define regulatory roles between the SEC and CFTC over crypto markets to provide legal clarity.
Clear regulations help crypto firms comply with the law, reduce risks, attract investors, and foster industry growth.
