Trump Administration Prepares Executive Order to Fine Banks Over Crypto Account Closures

The Trump administration is drafting an executive order that would penalize financial institutions for closing cryptocurrency-related accounts without justification. The order proposes fines, consent decrees, and other disciplinary measures against banks found to discriminate against crypto customers. This move marks a sharp contrast to the Biden administration's approach, which critics argue enabled banks to use vague "reputational risk" assessments to reject crypto clients.

Banking regulators under TRUMP have already eliminated these subjective risk assessments, which previously allowed institutions to sever ties with digital asset businesses. High-profile cases—including Coinbase CEO Brian Armstrong's account closures—have highlighted the banking sector's reluctance to engage with crypto despite growing institutional demand.

Financial institutions defend their actions by citing anti-money laundering compliance and regulatory uncertainty. Bank of America's statement reflects the industry's balancing act: "We've provided detailed proposals and will continue to work with the administration and Congress to improve the regulatory framework." The executive order could force banks to reconsider their risk calculus as policymakers signal stronger support for crypto innovation.