New White House Order Could Fine Banks For Discrimination Against Crypto Firms
BY
Ben Graham
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The White House is preparing an executive order that could fine and penalize banks that terminate customer accounts for political reasons. The draft order could be signed as early as this week.
The executive order will be a clear mandate for federal regulators to take action. It instructs agencies to use full authority to investigate and punish discriminatory banking practices.
According to a Wall Street Journal report published on 4 August 2025, the White House “is preparing to step up pressure against banks over perceived discrimination against conservatives and crypto companies with an executive order that threatens to fine lenders that drop customers for political reasons.
According to the publication, “A draft of the executive order directs bank regulators to investigate whether any financial institutions might have violated the Equal Credit Opportunity Act, antitrust laws or consumer financial protection laws.”
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Banks Found To Be In Violation Could Face Significant Consequences
Financial institutions have been guilty of “de-banking” or denying services to or terminating accounts or businesses for reasons other than financial risk. The banks found to be in violation could face monetary penalties, consent decrees, and other disciplinary actions.
The order also empowers regulators to refer specific cases of potential violations to the US Attorney General for further action.
While the draft executive order does not name any specific banks, it refers incidents that have drawn public criticism.
Furthermore, a White House report that dropped just days ago calls for the CFTC to get clear authority over crypto exchanges that deal with non-security tokens. It also urges regulators to finally settle the debate over stablecoin rules and self-custody protections. One standout suggestion is the CLARITY Act, which aims to put an end to the jurisdictional tug-of-war between agencies.
Read More: Morgan Stanley To Launch Crypto Trading: Are Banks Paying Heed To Eric Trump’s Warning?
Are Banks Paying Heed To Eric Trump’s Warning?
On 1 May 2025, Morgan Stanley revealed its plan to launch crypto trading through its E-Trade platform. The bank plans to launch the crypto services in 2026. However, the project is in its nascent stage for now. Furthermore, Morgan Stanley is considering partnering with one or multiple established crypto firms as it sets up the mechanics for the brokerage’s clients to buy and sell popular tokens, including Bitcoin and Ether.
Notably, the move comes as Eric Trump, Executive Vice President of the Trump organization and, of course, the son of US President Donald Trump, issued a warning of extinction to traditional banks.
The financial landscape, specifically traditional banking, is going through a seismic shift, with digital assets and decentralized finance (DeFi) gaining trust among users.
Eric Trump has chosen a side. “There’s nothing that can be done on blockchain that can’t be done better than the way that the current financial institutions are working,” he said. “The modern financial system is broken, it’s slow, it’s expensive.”
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Key Takeaways
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