Banks Could Face Fines for ‘De-Banking’ Crypto Firms Under White House Order

The White House is preparing an executive order to penalize banks for cutting off customers based on political or ideological reasons, targeting what conservatives and crypto firms describe as financial discrimination. The draft order, reviewed by The Wall Street Journal, directs regulators to probe potential violations of laws like the Equal Credit Opportunity Act, antitrust statutes, or consumer protection rules. Banks found guilty could face fines, consent decrees, or other penalties.

The order cites high-profile cases, including Bank of America’s 2023 closure of a Christian charity’s accounts in Uganda—a MOVE the bank attributed to its policy against serving overseas small businesses. It also scrutinizes financial institutions’ cooperation with federal investigations into the Jan. 6 Capitol riots, urging regulators to address perceived biases.

The move signals growing regulatory scrutiny over banks’ treatment of crypto firms, which have long complained of arbitrary account closures. While no specific banks or cryptocurrencies are named, the order could embolden digital asset advocates pushing for fairer access to financial services.