Banks May Encounter Penalties for ‘De-Banking’ Cryptocurrency Companies Following White House Directive: Report

The White House is reportedly working on an executive order that would impose penalties on banks for terminating customers based on political or ideological grounds, aiming to address what conservatives and cryptocurrency companies have long described as financial discrimination.

A draft of the order, reviewed by The Wall Street Journal, directs bank regulators to assess whether financial institutions have violated laws such as the Equal Credit Opportunity Act, antitrust regulations, or consumer protection statutes.

Banks found to be in violation could incur fines, consent decrees, or other sanctions.

Bank of America Case Resurfaces in Draft Order

Although the order does not specify any particular banks, it alludes to instances that have garnered political scrutiny in recent years.

Exclusive: The White House is preparing to intensify pressure on major banks regarding perceived discrimination against conservatives and crypto firms through an executive order https://t.co/Flha5sPtCN

— The Wall Street Journal (@WSJ) August 4, 2025

One such instance is a 2023 allegation that Bank of America closed the accounts of a Christian charity operating in Uganda, as reported by WSJ. The bank stated that the account closure was due to its policy of not servicing small businesses based abroad.

The draft also critiques the involvement of certain financial institutions in federal inquiries related to the January 6 Capitol riots. It urges regulators to eliminate any internal policies that may have led to the exclusion of customers based on reputational or ideological factors.

The Journal indicated that the order could be signed as early as this week, although delays are still a possibility.

Banks Cite Risk, AML Rules in Defense

The issue of “de-banking” has been a persistent grievance among conservative groups, which contend that their accounts and donations are frequently restricted or terminated without adequate justification.

Cryptocurrency firms have also expressed concern over what they perceive as unofficial pressure from regulators that has led banks to discreetly sever ties with blockchain startups, particularly following the failures of crypto-friendly institutions like Silvergate and Signature Bank.

Banks, on the other hand, have justified these actions as risk-based, citing adherence to anti-money-laundering regulations and federal scrutiny of emerging sectors such as digital assets.

They have highlighted existing regulatory frameworks that complicate the onboarding of crypto clients, with increased know-your-customer and transaction monitoring requirements.

Banking Rules Face Shake-Up in Politicization Fight

The draft order exerts additional pressure. It instructs the Small Business Administration to review how banks manage loan guarantees. This aspect is particularly crucial for crypto startups and conservative nonprofit organizations that depend on access to financial services.

During President Trump’s administration, banking regulators implemented a significant policy shift. They announced they would cease evaluating banks based on the reputational risks associated with their customers. Previously, banks had utilized this rationale to avoid certain clients or sectors.

Furthermore, the draft empowers regulators to refer specific cases directly to the Department of Justice. In April, the Justice Department initiated a task force in Virginia. This team was established to investigate allegations that banks had denied services or credit access based on impermissible criteria.

While the draft is not yet finalized, it indicates a broader federal initiative. Critics argue that this initiative seeks to mitigate the increasing politicization of financial services.

If implemented, the order would represent a significant development in the ongoing discourse surrounding free speech, financial access, and the role of banking institutions within a divided political landscape.

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