White House Bans Financial Discrimination

The White House is reportedly preparing an executive order aimed at penalizing banks that terminate customer relationships based on political or ideological grounds, addressing long-standing concerns from conservatives and crypto companies about financial discrimination.

According to a draft reviewed by The Wall Street Journal, the order directs bank regulators to investigate whether financial institutions have violated laws such as the Equal Credit Opportunity Act, antitrust regulations, or consumer protection statutes.

Banks found in breach could face penalties including fines and consent decrees.

The draft references politically sensitive cases without naming specific banks. Among them is a 2023 claim that Bank of America closed the accounts of a Christian charity operating in Uganda—a move the bank explained as compliance with its policy of not servicing small businesses located overseas.

Additionally, the order criticizes the involvement of some financial institutions in federal investigations related to the January 6 Capitol riots, urging regulators to eliminate internal policies that could lead to excluding customers on reputational or ideological bases.

The Wall Street Journal reports the executive order could be signed as early as this week, though timing remains uncertain.

Crypto Firms Often Targets of De-banking

Conservatives and crypto firms have long decried so-called “de-banking,” arguing that accounts and donations are frequently restricted or closed without transparent reasons.

Crypto startups, in particular, have raised alarms over perceived regulatory pressure that has led banks to sever ties with blockchain businesses, especially following the failures of crypto-friendly banks like Silvergate and Signature Bank.

Banks, meanwhile, defend these measures as necessary risk management practices under anti-money laundering (AML) regulations and heightened federal scrutiny of emerging sectors such as digital assets.

They emphasize the complexities of onboarding crypto clients due to enhanced know-your-customer (KYC) and transaction monitoring requirements.

The proposed order intensifies scrutiny of banking practices, instructing the Small Business Administration to review how banks manage loan guarantees—a crucial area for crypto startups and conservative nonprofit organizations depending on reliable financial access.

Under the Trump administration, banking regulators ceased evaluating banks based on reputational risk, which previously justified avoiding certain clients or industries.

The draft order seeks to build on this shift by granting regulators authority to refer cases directly to the Department of Justice, which in April launched a task force in Virginia to investigate alleged discriminatory denials of banking services or credit.

Though still a draft, the order signals a broader federal effort to address the politicization of financial services.

If implemented, it would represent a significant development in the ongoing debate over free speech, banking access, and the role of financial institutions amid a highly polarized political landscape.