Trump Executive Order To Probe Debanking Of Crypto Firms: WSJ

Donald Trump is preparing to sign a sweeping executive order to investigate banks and regulators accused of debanking crypto businesses — the practice of denying financial services on a discriminatory basis.

That’s according to an Aug. 4 report by the Wall Street Journal, which said regulators in the banking industry will be instructed to investigate whether any financial institutions violated antitrust, consumer financial protection or fair lending practice laws under the Biden administration. 

The order also calls on banks to eliminate any internal policies that may have led to the closure of accounts tied to political beliefs or crypto activity, including those affecting conservative organizations. Institutions found to be in violation could face fines or legal action, and serious cases will be referred to the Department of Justice.

No banks were named, but the WSJ story said the order has reportedly criticized the role of firms that are said to have helped federal investigators probe the riots that took place at the US Capitol on Jan. 6, 2021. 

Trump Order Demanding Regulatory Overhaul Could Be Signed This Week

The executive order also reportedly directs banks to terminate any of their policies that may have contributed to banks dropping their clients, including those operating in crypto.

Additionally, the order instructs the US government’s Small Business Administration to review practices that guarantee the loans made to small businesses. 

According to the report, Trump could sign the executive order as early as this week. However, there is still the possibility that the White House may delay or change the plan.

Crypto Executives’ Calls For Change Finally Heard

The reported executive order comes after crypto industry leaders long accused the Biden Administration of trying to cut off crypto from the traditional banking system.

Allegations that the former administration was cutting off the industry started in late 2022 after the collapse of FTX, the now-defunct exchange that turned out to be a massive fraud. 

During testimony at a February Congressional hearing, Coinbase legal chief Paul Grewal said that the Biden-era Federal Deposit Insurance Corporation (FDIC) “bludgeoned the banks” with examinations and questions around crypto until they eventually “relented under the pressure.” 

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