The Trump administration is considering an executive order aimed at preventing banks from cutting off services to cryptocurrency and technology companies. This move may respond to allegations of systematic refusals by banks in politically unfavorable industries.
Impact on Banks
According to information from the Wall Street Journal, some banks, such as JPMorgan Chase, Citigroup, and Wells Fargo, have met with state officials in Texas and Oklahoma to defend against allegations that they refuse to serve industries such as manufacturing and fossil fuel extraction.
Political Dynamics
Democratic Senator Elizabeth Warren has urged the Trump administration to take action against the largest banks for denying services based on political or industry considerations. "For me, this is straightforward: it doesn’t matter who you voted for, what you believe in, or the origin of your last name, people shouldn’t be arbitrarily denied access to their banks," she stated during a Senate hearing.
Future of the Crypto Industry
Despite a possible more favorable regulatory environment for cryptocurrency under the Trump administration, concerns regarding debanking may persist until 2026. Caitlin Long, founder and CEO of Custodia Bank, noted it's premature to say that the issue is resolved and urged attention to potential political conflicts in the future.
Thus, the considered executive order by Trump may have a significant impact on the cryptocurrency industry in the U.S.; however, questions remain about how it will be implemented in the current political and economic climate.
