Donald Trump is preparing to sign a comprehensive executive order to investigate banks and regulators accused of stripping operational rights from cryptocurrency businesses - a practice of denying financial services on a discriminatory basis.
According to an August 4 report from the Wall Street Journal, regulators in the banking industry will be directed to investigate whether any financial institutions violated antitrust laws, consumer financial protection laws, or fair lending practices during the Biden administration.
The order also calls for banks to eliminate any internal policies that could lead to account closures related to political beliefs or cryptocurrency activities, including policies affecting conservative organizations. Organizations found in violation could face penalties or legal action, and severe cases will be referred to the Department of Justice.
No banks were named, but the WSJ article states that the order is said to have criticized the role of companies that allegedly helped federal investigators investigate the riot that occurred at the U.S. Capitol on January 6, 2021.
Trump's Order Demands Regulatory Overhaul That Could Be Signed This Week
This executive order is also said to direct banks to end any policies that could contribute to banks losing customers, including those banks operating in the cryptocurrency sector.
Additionally, this order directs the U.S. Small Business Administration to review the activities of guaranteeing loans for small businesses.
According to reports, Trump could sign the executive order as early as this week. However, there remains the possibility that the White House may delay or change the plan.
The Call for Change from Cryptocurrency Operators Has Finally Been Heard
The executive order was issued after cryptocurrency industry leaders had long accused the Biden administration of trying to eliminate cryptocurrency from the traditional banking system.
Allegations that the previous administration stifled this industry began in late 2022 following the collapse of FTX, a now-defunct exchange that turned out to be a major scam.
In testimony at a congressional hearing in February, Coinbase's legal director, Paul Grewal, stated that the Biden-era Federal Deposit Insurance Corporation (FDIC) had "pressured banks" with cryptocurrency-related examinations and questions until they ultimately "accepted the pressure."
