Donald Trump Signs Executive Order to Prevent Banks From Discriminating Crypto.
US President Donald Trump on Thursday signed an executive order to prevent banks from discriminating against the crypto industry.
Trump signed another pro-crypto executive order yesterday, this time targeting complaints from crypto industry leaders of a coordinated effort to “debank” them. For the uninitiated, the term describes a discriminatory approach where a bank rejects a customer, and this can happen for several reasons.
The August 7 executive order aims to tackle this menace, particularly for those also cut off due to their political and religious biases. This adds to Trump’s effort to bar banks from sidelining crypto enthusiasts.
Meanwhile, the order mandated federal regulators to end bias against legal businesses or individuals due to “reputational risk.” It also urged them to evaluate existing guidelines and rescind any that encourage this discrimination.
Furthermore, it tasked Wall Street regulators to investigate if any bank had in the past or currently, formerly or informally, adopted policies that unlawfully debank crypto firms. Additionally, the order threatened fines and other disciplinary actions against banks that discriminate against conservatives or crypto affiliates.
The order addresses Operation Choke Point 2.0, a term coined from a targeted action to ostracize the crypto industry from relating to the banking system. The alleged scheme was in full swing in the Biden administration, as banks were encouraged to disconnect from the heavily regulated digital asset sector.
While crypto firms have received a warmer treatment since Trump assumed office, the order aims to permanently ensure persistent compliance. Recall that Federal Reserve Chair Jerome Powell stated in January that banks can offer crypto services, with both the FDIC and OCC clearing banks under their jurisdiction to do so.