The White House is poised to issue a game-changing executive order aimed at penalizing banks that cut ties with customers over ideological beliefs. Expected to be signed by President Donald Trump later this week, the order directs banking regulators to probe whether financial institutions breached the Equal Credit Opportunity Act or other consumer protection laws when closing accounts. While the specifics are still in flux, this move could inject much-needed stability into the crypto sector, which has faced its share of banking woes. For more context, see our coverage of the Trump White House’s long-promised crypto report.
A Political Tug-of-War
In recent years, the crypto industry has been caught in a political tug-of-war. During the Biden administration, a coordinated federal effort, dubbed Operation Chokepoint 2.0, sought to clamp down on crypto firms through debanking practices. This controversial approach left many in the sector scrambling for reliable banking partners. Now, with the Trump administration’s renewed focus on preventing debanking over ideological differences, the landscape may shift once more.
The proposed order does not single out specific banks but reportedly references Bank of America’s decision to shutter accounts belonging to a Christian nonprofit in Uganda. According to the bank, the closure was due to its policy against serving small businesses operating outside the U.S. However, critics see this as part of a broader pattern of denying services for ideological reasons.
Crypto’s Banking Conundrum
The crypto industry has long grappled with banking challenges. Banks frequently cite concerns over money laundering and regulatory scrutiny as reasons for their hesitancy to engage with crypto firms. Yet, according to the Wall Street Journal, the Justice Department has already launched a task force to investigate claims that banks are denying services based on “impermissible factors.” This move could signal a shift in how regulators and financial institutions approach the burgeoning crypto sector. For a deeper dive into the regulatory implications, see our coverage of the SEC-CFTC clarity for US crypto firms.
Here’s the catch: even with the proposed executive order, crypto and fintech firms might still face hurdles. Venture capital giant Andreessen Horowitz (a16z) has sounded the alarm, warning that banks are making it costlier for customers to use fintech apps like Coinbase and Robinhood. This phenomenon, informally dubbed “Operation Chokepoint 3.0,” involves banks accepting crypto and fintech businesses as clients but slapping them with hefty fees to access account data or transfer funds. The implications are significant—potentially stifling competition and innovation in a rapidly evolving market.
A Path Forward?
As the crypto sector waits to see how these developments will unfold, banks have already begun updating their policies and engaging with Republican attorneys general to stave off further conflict. Despite these efforts, the uncertainty surrounding regulatory and banking practices continues to loom large over the industry.
The executive order’s impact remains to be seen, but it raises important questions about the future of banking and crypto. Will this initiative pave the way for more equitable access to financial services, or will it create new challenges for an industry already navigating turbulent waters? As the order comes to fruition, the crypto world watches with bated breath, hopeful for a resolution that balances regulatory compliance with the freedom to innovate.
In the months ahead, the financial community will be keenly observing how regulators and banks adapt to this evolving landscape. The stakes are high, and the road ahead promises to be anything but straightforward.
Source
This article is based on: New White House Order Could Punish Banks for Dropping Customers Over Beliefs
Further Reading
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- Quintenz, Trump’s Pick as Potential U.S. Crypto Watchdog, Delayed by White House
- Trump’s Top Crypto Guys: U.S. DeFi Will Thrive, Assures Bitcoin Reserve Is Coming
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
