According to BlockBeats, U.S. President Donald Trump is preparing to sign an executive order aimed at addressing the debanking practices affecting cryptocurrency companies and conservative individuals. The order seeks to tackle discrimination by financial institutions and threatens penalties for banks that sever ties with clients for political reasons.
A draft of the executive order, seen by media sources, instructs regulators to investigate potential violations of the Equal Credit Opportunity Act, antitrust laws, or consumer financial protection laws by financial institutions. However, the order does not specifically name any companies. Insiders suggest the executive order could be signed as early as this week, though delays are possible.
Debanking, also known as Operation Choke Point 2.0, refers to targeted actions under increased regulatory scrutiny by the Biden administration, aimed at severing ties between cryptocurrency and other businesses with financial services. Operation Choke Point 1.0 was initiated by the U.S. Department of Justice in 2013 to restrict banking services to industries considered high-risk for fraud, such as payday lenders and gun dealers.