A new executive order is being prepared by the White House, aiming to impose penalties on banks that sever ties with customers based on their ideological stance. According to reports by the Wall Street Journal, this order is expected to be signed by President Donald Trump in the near future. The directive would instruct banking regulators to probe whether financial institutions have breached the Equal Credit Opportunity Act or other consumer protection laws when closing accounts. The move is seen as a step to bring stability to the cryptocurrency sector, which has faced challenges in the past, including a coordinated effort during the Biden administration to restrict banking services to crypto firms.
The proposed order references an incident involving Bank of America and a Christian nonprofit in Uganda, where the bank cited its policy of not serving small foreign businesses as the reason for account closure. Banks argue that their decisions are driven by concerns over money laundering and regulatory scrutiny.
The initiative is part of a broader effort by the Trump administration to combat the practice of denying financial services based on ideological grounds. Regulators are called upon to refer any violations to the attorney general, and the Justice Department has already taken steps in this direction by launching a task force to investigate claims of banks denying access to credit or financial services due to impermissible factors.
Despite these developments, the cryptocurrency and fintech sectors may still face difficulties in accessing banking services, with some firms warning of potential obstacles, including hefty fees for data access or money transfers.