White House Prepares Sanctions for Banks Discriminating Against Crypto Industry and Conservative Groups

The United States government is reportedly drafting an executive order that could impose sanctions on banks found to have engaged in discriminatory practices against cryptocurrency companies and conservative organizations. The move comes in response to growing concerns over de-banking practices allegedly driven by ideological and political motives rather than legitimate commercial considerations.

Criticism of De-Banking Practices Continues to Grow

The draft policy emerges amid heightened scrutiny of banking service terminations that appear to be based not on business risk assessments but on ideological pressure. Some financial institutions previously claimed that such actions were taken to comply with anti-money laundering (AML) regulations and to avoid reputational risk. However, critics argue that these justifications mask politically motivated discrimination.

Directive to Federal Regulators and Relevant Agencies

According to a report from the Wall Street Journal, the executive order will direct federal oversight agencies—such as the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC), and the Consumer Financial Protection Bureau (CFPB)—to investigate potential violations of several federal laws, including:

• The Equal Credit Opportunity Act

• Antitrust statutes

• Consumer protection regulations

Sanctions may include administrative fines, consent decrees, and other disciplinary measures. Additionally, the Small Business Administration (SBA) will be instructed to reassess its lending policies to ensure that no form of discrimination occurs against businesses operating within the cryptocurrency sector or among conservative communities.

Controversial Cases Under the Spotlight

Although the draft does not explicitly name financial institutions, it references several past incidents. One such case involved allegations that Bank of America closed the accounts of a Christian organization based in Uganda without providing a clear legal basis. In another example, former President Donald Trump and other conservative figures accused JPMorgan Chase and Bank of America of denying services based on political affiliation. Both banks, however, have denied these allegations.