Banks Face Regulatory Scrutiny Over Alleged Discrimination Against Crypto and Conservative Groups

Financial institutions may soon face heightened penalties for denying services based on political affiliations or ties to the cryptocurrency industry, according to a draft executive order reviewed by The Wall Street Journal. The directive would mandate federal regulators to probe potential violations of key banking laws, including the Equal Credit Opportunity Act and antitrust regulations.

Banks found in breach could be subject to fines, lawsuits, or compelled to reform practices through legally binding agreements. While timing remains fluid, the order—expected to be signed this week—would mark a significant MOVE by the Trump-aligned administration to protect banking access for groups it views as unfairly marginalized.

Conservative organizations and crypto firms have long alleged systemic discrimination, claiming account closures or service denials based on ideological grounds. Crypto entities particularly argue they face de-risking by banks preemptively avoiding regulatory scrutiny, even when operating legally. The draft order indirectly references high-profile cases, including unresolved disputes involving major financial institutions.