The White House is preparing an executive order addressing the debanking of cryptocurrency companies as part of a new Digital Fairness Drive.
What is the Digital Fairness Drive?
The order aims to combat what is termed 'debanking', where banks close accounts based on political or ideological reasons, not risk. Regulators will investigate potential violations of equal credit opportunity and consumer protection laws.
Reasons Behind the New Initiative
The initiative emerges amidst scrutiny of Operation Chokepoint 2.0, where banks severed ties with crypto companies. Reports indicate over thirty crypto founders faced banking service denials in recent years, and Congress is holding hearings on these issues.
Impact on the Financial Industry
Experts believe that removing ideological biases from banking decisions will lead to greater financial inclusion. However, critics point to compliance and AML risks, noting that transparency in account closure practices remains limited.
The crypto debanking executive order could significantly alter the federal approach to banking access for ideological and crypto-affiliated clients. The formal signing of the order is expected soon.
