US President Donald Trump on Thursday signed an executive order to prevent banks from discriminating against the crypto industry.
Trump signed another pro-crypto executive order yesterday, this time targeting complaints from crypto industry leaders of a coordinated effort to “debank” them. For the uninitiated, the term describes a discriminatory approach where a bank rejects a customer, and this can happen for several reasons.
The August 7 executive order aims to tackle this menace, particularly for those also cut off due to their political and religious biases. This adds to Trump’s effort to bar banks from sidelining crypto enthusiasts.
Trump Signs to End Crypto Discrimination
Meanwhile, the order mandated federal regulators to end bias against legal businesses or individuals due to “reputational risk.” It also urged them to evaluate existing guidelines and rescind any that encourage this discrimination.
Furthermore, it tasked Wall Street regulators to investigate if any bank had in the past or currently, formerly or informally, adopted policies that unlawfully debank crypto firms. Additionally, the order threatened fines and other disciplinary actions against banks that discriminate against conservatives or crypto affiliates.
The order addresses Operation Choke Point 2.0, a term coined from a targeted action to ostracize the crypto industry from relating to the banking system. The alleged scheme was in full swing in the Biden administration, as banks were encouraged to disconnect from the heavily regulated digital asset sector.
While crypto firms have received a warmer treatment since Trump assumed office, the order aims to permanently ensure persistent compliance. Recall that Federal Reserve Chair Jerome Powell stated in January that banks can offer crypto services, with both the FDIC and OCC clearing banks under their jurisdiction to do so.
Crypto History with Debanking
Remarkably, some high-profile industry leaders have faced debanking issues over the years. One such is Ripple CEO Brad Garlinghouse, who disclosed in October 2024 that Citigroup asked him to move his account elsewhere due to his ties with the crypto industry.
Eric Trump, who is an executive of World Liberty Financial, also revealed a similar treatment, noting that he discovered crypto because many US banks debanked him for his political affiliation. Several others, like Coinbase CEO Brian Armstrong, the Winklevoss twins, and Kraken co-founder Jesse Powell, experienced similar marginalization.
Trump Signs Another Pro-Crypto Executive Order
Meanwhile, Trump also signed an executive order on Thursday opening the crypto market to the $12.5 trillion retirement fund market. The order now allows 401(k)s to buy Bitcoin and other alternative assets, such as real estate.
Notably, the president has signed several executive orders since assuming office in January aimed at making America the crypto capital of the world. Recall that he signed one to create a national strategic crypto reserve in March. This highlights Trump’s efforts to fulfill his promises to the crypto industry and support technological innovation in the US.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
