White House Prepares Executive Order to Penalize Banks for Discrimination
The White House is set to issue an executive order targeting banks that discriminate against customers based on their beliefs. Key points include:
- The order aims to penalize banks for closing accounts in violation of the Equal Credit Opportunity Act.
- President Donald Trump is expected to sign it this week.
- The initiative follows a trend during the Biden administration, known as Operation Chokepoint 2.0, which impacted crypto firms.
- The draft does not specify banks but references an incident involving Bank of America and a Christian nonprofit.
- Banks attribute account closures to concerns over money laundering and regulatory pressures.
- The order allows regulators to refer violations to the attorney general; a task force was launched in April to investigate such claims.
- Despite the order, challenges remain for the crypto sector, with warnings about increased costs imposed by banks, termed “Operation Chokepoint 3.0.”
- This operation involves hefty fees for crypto businesses accessing financial services, impacting platforms like Coinbase and Robinhood.