Trump is expected to issue an executive order to prevent banks from denying services to cryptocurrency companies.
The move could boost cryptocurrency stability and attract institutional capital inflows in the United States.
US President Donald Trump is set to sign a major executive order aimed at protecting cryptocurrency companies from discrimination by banks.
This is a clear step forward, fulfilling his campaign promise to support cryptocurrencies.
Trump to sign executive order to deal with banks
According to The Wall Street Journal, the upcoming order will prohibit banks from denying services based solely on their sector of operation or political bias against cryptocurrency businesses.
The Domestic Policy Council, headed by Vince Haley, is leading the drafting of the order, which could have far-reaching implications for businesses in the cryptocurrency industry.
The move comes amid growing pressure from conservative states, which accuse major US banks of discriminating against sectors like cryptocurrencies, guns and energy, not for financial reasons but because of political bias.
In February, Democratic Senator Elizabeth Warren also called on the Trump administration to investigate banks accused of denying services based on political views or industry type.
She said,
“To me, this is clear: No matter who you voted for, what you believe in, or where your name comes from, people should not be arbitrarily denied access to banking, locked out of their accounts, or deprived of their banking services.”
However, in response to the allegations, executives at JPMorgan Chase, Wells Fargo and Citibank have held discussions with officials in Texas and Oklahoma to address these concerns.
Is this good news for the crypto industry?
The move is seen as a direct response to what the crypto industry calls “Operation Chokepoint 2.0,” a coordinated effort by the Joe Biden administration to cut off banking access for crypto businesses.
During that period, at least 30 tech and crypto entrepreneurs were denied banking services.
The sudden collapse of three crypto-friendly institutions – Silicon Valley Bank, Silvergate Bank and Signature Bank – in March 2023 further heightened concerns of a systemic squeeze.
Now that Trump is back in office, federal officials appear ready to reverse course by adopting protections for digital asset businesses.
If implemented, the directive could restore access to essential banking infrastructure for crypto companies and create a more supportive environment.
This can also attract institutional investors by demonstrating a friendly management policy.
The proposal is expected to spark legal and political debate, however, over the extent to which the federal government can intervene in private banking.
What lies ahead?
Despite the Trump administration and deregulation efforts showing a pro-crypto stance, concerns about “debanking” have not been fully addressed.
Trump pledged to end Operation Chokepoint 2.0 and ease SEC regulations like SAB 121. However, crypto businesses still face many uncertainties when it comes to accessing banking services.
Notably, Federal Reserve Chairman Jerome Powell has just confirmed that banks are allowed to provide services to cryptocurrency companies as long as they comply with existing regulations.
Powell said,
“It is up to the banks to decide who their customers are, it is not up to us. Banks can absolutely provide services to the crypto industry and related companies.”
While cautiously optimistic, this is not a comprehensive solution.
But the consensus between the Trump administration and the Fed marks a rare turnaround in cryptocurrency policy in the United States.
Source: https://tintucbitcoin.com/order-trump-to-help-businesses-tien-dien-tu/
Thank you for reading this article!
Please Like, Comment and Follow TinTucBitcoin to stay updated with the latest news about the cryptocurrency market and not miss any important information!
