The White House is preparing a new executive order against major banks for allegedly discriminating against certain individuals and cryptocurrency companies.
Financial institutions that exclude customers based on political views could face fines, according to a draft obtained by the Wall Street Journal.
The executive order directs banking regulators to investigate whether any financial institution has violated the Equal Credit Opportunity Act, competition laws, or consumer financial protection laws. Banks found in violation could face fines, settlement orders, or other disciplinary action.
While it is stated that the order could be signed by President Trump this week, it is also stated that there may be delays or changes in the process.
This move by the Trump administration has created unease in the banking sector. A similar executive order was reportedly under consideration in June.
Cryptocurrency companies claim they have been excluded from banking services during the Biden administration. Banks, however, say their decisions are based on legal and financial risks, not political motivations. They say they are staying away from the crypto sector due to US anti-money laundering laws.
*This is not investment advice.
