In a surprising development that may reshape the relationship between the American financial system and the cryptocurrency sector, reports have revealed that President Donald Trump intends to issue an executive order punishing banks that refuse to provide services to crypto companies or conservative individuals for political reasons.
Background of the decision
According to the Wall Street Journal, the White House is working on drafting an executive order that requires regulatory agencies to review the policies of banks suspected of practicing what is known as 'service refusal' or debanking, which is the refusal to provide financial services to customers based on their political views or type of activity, especially in the cryptocurrency sector.
Among the expected measures in this decision:
Imposing fines on banks found to be involved in discrimination against their customers.
Opening official investigations into cases of unjustified refusals.
Obligating financial institutions to respect laws related to equal credit opportunity and consumer rights.
Review of banks' dealings with government guarantee programs, such as Small Business Administration loans.
Trump recounts his experience
President Trump stated that several major banks refused to deal with him personally, including JPMorgan and Bank of America. He confirmed that what happened to him was purely politically motivated, saying in a television interview:
> "I was discriminated against by banks simply because I am conservative."
Has the decision actually been issued?
So far, the executive order has not been officially signed, but media reports indicate that it may be announced during the current week. This news immediately affected financial markets, with shares of some major banks like JPMorgan dropping by 1% and Bank of America by 0.3%.
What is the relationship of cryptocurrency companies?
Cryptocurrency companies have long complained about the difficulty of opening or maintaining bank accounts, as some banks consider this type of activity 'high-risk,' or may avoid it for regulatory reasons. The new executive order would provide greater legal protection for these companies and prevent discrimination against them by the banking system.
Summary of the matter:
President Trump is preparing to sign an executive order imposing oversight and sanctions on banks that refuse to serve customers due to their political backgrounds or activities in cryptocurrencies.
The decision has not yet been signed, but it is in the final preparation stage.
Crypto companies may benefit from this decision in obtaining fair treatment from banks.
Major banks have begun to feel market pressure even before the decision is issued.
If this decision is issued, it could open a new phase in the relationship between American banks and the cryptocurrency sector, and it may represent a significant shift in the future regulatory environment.