Trump to Sign Executive Order Targeting Banks Discriminating Against Crypto
President Donald Trump is set to sign an executive order targeting banks that allegedly engage in "debanking" of crypto companies. This order aims to address discrimination based on political affiliation or involvement in cryptocurrencies.
Penalties for Violators
- The order will instruct banking regulators to investigate potential discrimination by financial institutions against crypto-related customers.
- Possible penalties include monetary fines, consent decrees, and legal consequences.
- It may also direct investigations into violations of antitrust laws and consumer protection regulations.
Banks and Crypto Customers
- This initiative follows claims from crypto executives and conservative groups that the banking system has systematically targeted them, particularly during the Biden administration.
- Allegations include pressure on banks to sever ties with digital asset firms post-FTX collapse in 2022.
- Coinbase's chief legal officer testified about FDIC pressures on banks regarding crypto clients.
Trump’s Regulatory Overhaul
- The order extends to reviewing lending guarantees by the Small Business Administration (SBA) to prevent discrimination.
- Regulators are instructed to remove policies that lead banks to drop customers for reputational reasons.
Political Donations and Crypto Influence
- Crypto entities have contributed nearly $45 million to Trump-aligned political groups this year.
- Notable donors include Crypto.com, Blockchain.com, and venture capitalists like Marc Andreessen.
- Trump hosted dinners with crypto donors, indicating strong ties between the industry and the administration.