5-8-2025 – The White House is set to issue an executive order penalizing banks that terminate customer relationships based on political or ideological grounds, addressing complaints from crypto firms and conservative groups about financial discrimination, first reported by The Wall Street Journal.
The draft order, which may be signed this week, directs regulators to investigate violations of laws like the Equal Credit Opportunity Act, antitrust regulations, or consumer protection statutes, with penalties including fines or consent decrees for non-compliant banks. Crypto startups have long criticized “de-banking,” claiming banks sever ties under regulatory pressure, particularly after the collapse of crypto-friendly institutions like Silvergate and Signature Bank.
Banks counter that these decisions stem from compliance with anti-money laundering and know-your-customer requirements, citing heightened scrutiny of digital assets. The order also references a 2023 case where Bank of America closed a Christian charity’s accounts, citing its overseas operations, though critics alleged ideological bias. The directive escalates oversight by tasking the Small Business Administration with reviewing banks’ loan guarantee practices, critical for crypto startups and nonprofits.
It also empowers regulators to refer cases to the Department of Justice, which launched a task force in April to probe discriminatory service denials. This follows the Trump administration’s prior move to eliminate “reputational risk” as a basis for banks to avoid certain clients. If finalized, the order could reshape banking practices, fostering fairer access for crypto firms while intensifying debates over financial neutrality.
