The White House is gearing up to issue an executive order aimed at addressing discrimination by banks against conservative organizations and cryptocurrency businesses.
Objectives and Content of the Order
A draft of the order reviewed by The Wall Street Journal indicates that financial institutions could face significant penalties for denying services based on political affiliations or ties to the crypto industry. The order would require federal regulators to investigate potential violations of key laws, including the Equal Credit Opportunity Act, antitrust regulations, and consumer protection statutes.
Accusations Against Banks
For years, many conservative organizations and cryptocurrency-related companies have claimed that banks have shut their accounts or denied financial services for political or ideological reasons. Some groups report being flagged or dropped simply for holding conservative beliefs. Members of the crypto industry claim that banks cut them off to avoid regulatory pressures.
Banks' Responses and Administration Actions
In recent months, several major financial institutions have updated their internal policies to clarify that they do not discriminate based on political beliefs. A representative for Bank of America stated that the institution welcomes efforts by the administration to bring greater clarity to the rules. The order also calls on banking regulators to eliminate existing policies that may have encouraged banks to consider 'reputational risk' when deciding whether to work with certain customers.
If finalized, this order would represent a significant move towards ensuring banking access for groups the administration believes are facing unjust exclusion.
