WASHINGTON—The White House is reportedly drafting an executive order aimed at cracking down on financial institutions that cut ties with customers over political or ideological beliefs—a move intended to address growing complaints from conservative groups and cryptocurrency firms about alleged financial bias, Coin World said.
According to a draft obtained by The Wall Street Journal, the order would direct federal bank regulators to investigate whether such account closures violate laws including the Equal Credit Opportunity Act, antitrust regulations, or consumer protection rules. Institutions found in violation could face fines, consent orders, or other enforcement actions, Coin World reported.
While the draft order does not mention specific financial institutions by name, it cites cases that have fueled political controversy—such as a 2023 allegation that Bank of America shut down the account of a Christian charity operating in Uganda. The bank said the decision was based on its policy against serving small businesses located abroad.
The order also highlights the involvement of certain banks in federal investigations surrounding the January 6 Capitol attack and calls on regulators to scrutinize and eliminate internal policies that could result in excluding customers over reputational or ideological concerns, Coin World explained.
“The issue of ‘de-banking’ has been a persistent concern for conservative groups, who argue their accounts and donations are often restricted or terminated without clear justification. Similarly, crypto firms have raised alarms over what they perceive as informal pressure from regulators that has prompted banks to sever ties with blockchain startups, especially following the collapse of crypto-friendly institutions like Silvergate and Signature Bank,” Coin World said.
Coin World noted that banks, however, have defended these decisions by emphasizing compliance with anti-money-laundering rules and the heightened regulatory scrutiny surrounding digital assets.
“They have also pointed to existing frameworks that make onboarding crypto clients particularly challenging, requiring more rigorous know-your-customer and transaction monitoring procedures,” Coin World said.
The proposed directive adds new pressure to the banking sector, directing the Small Business Administration to review how banks manage loan guarantees, a critical support mechanism for crypto startups and conservative nonprofits, Coin World added.