Bitcoin’s price is held strong at $115,000 as the White House prepares to crack down on banks accused of overthrowing Bitcoin and cryptocurrency companies and politically conservative organisations.
According to a new Wall Street Journal report, the Trump administration has completed an executive order that punishes banks that refuse to serve their customers based on political beliefs and affiliations in Bitcoin and crypto. This is a major policy change that is beneficial to the digital asset industry.
“The White House is preparing to step up pressure on major banks for perceived discrimination against conservatives and crypto companies with an enforcement order that threatens the great lenders who drop customers for political reasons,” the WSJ reported.
The draft executive order viewed by the journal directs federal regulators to investigate whether financial institutions are violating laws such as the Equal Credit Opportunity Act, Antitrust Rules, and Consumer Financial Protection Act. In that case, the offender could, according to the draft, be subject to financial penalties, consent forms or other disciplinary measures.
The executive order comes after years of complaints from Bitcoin and crypto companies. They say they were systematically locked out of traditional banking services under the Biden administration. Many companies struggled to maintain checking accounts, access payment processors, and receive basic credit services.
Banks defend their decisions by citing legal, regulatory or financial risks, particularly by citing concerns about compliance with the Anti-Money Laundering Act. However, under the draft order, regulators are directed to eliminate internal policies that may have contributed to de-pasting practices and consider joining banks in federal lending programs.
The draft does not explicitly name the bank, but it references a controversy over the Bank of America, which has been accused of shutting down accounts belonging to a Christian nonprofit organization operated in Uganda. The bank responded and said it was not serving small businesses operating outside the US.
The draft also criticizes the bank’s involvement in the federal investigation into the Capitol riots of January 6, further suggesting the administration’s intention to stand up to what is considered ideological targets of the financial sector.
“The banks had the advantage over potential actions by the Trump administration,” the journal said it referenced an early June report on the discussion of similar executive orders.
A spokesman for Bank of America commented: “We will continue to work with the administration and Congress to provide detailed proposals and improve our regulatory framework.”
The policy could mark a turning point as the order could be signed immediately this week and regulators were instructed to refer potential violations to the Attorney General, and the administration’s push to restore bank access can unlock critical infrastructure for crypto companies that have long run in the fringes of the US banking system.
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