White House Moves to Protect Crypto from Bank Discrimination

A New Front in the Crypto-Banking Battle

The White House is preparing to unleash a sweeping executive order that would punish banks for discriminating against crypto firms and conservative groups, in a sharp escalation of long-simmering tensions between financial institutions and politically aligned industries. According to a draft obtained by The Wall Street Journal, the order would direct federal regulators to investigate banks under various laws, including the Equal Credit Opportunity Act, antitrust laws, and consumer protection statutes.

If finalized, the directive would mark a major policy shift, especially under a Trump-aligned administration that sees banks as increasingly hostile toward certain ideologies and industries. Penalties could include fines, lawsuits, or legally binding consent orders forcing banks to change course.

Allegations of Financial Censorship

Crypto companies and conservative organizations have long alleged that their bank accounts were closed or denied for ideological reasons, not for legitimate risk-based assessments. The draft order appears to validate many of these concerns.

One notable case indirectly cited in the document involves Bank of America, which reportedly shut down accounts of a Christian nonprofit working in Uganda. Though the bank claimed the move was based on policy—not religion—the case has been held up by critics as an example of politicized banking.

Crypto companies have also been vocal. Many allege that under Biden-era regulators, banks were pressured to drop crypto clients even if no wrongdoing occurred—a practice some have called a “shadow ban.”

Reputational Risk: A Controversial Filter

The draft order would ban the use of “reputational risk” as a justification for cutting ties with clients. Banks have long used this term to avoid working with “high-risk” sectors like firearms, gambling, adult entertainment—and now, crypto and politically controversial groups.

Critics argue that this lets banks act as gatekeepers of political and moral values. The Trump administration had previously tried to restrict this practice, but it remained in place during the Biden years.

The new order could force regulators to rescind policies that permit such discretionary decisions. That includes instructing the Small Business Administration (SBA) to review how banks treat loan applicants, especially when handling federally backed loans—a move that could shake up thousands of small business relationships.

Banks Respond as Tensions Escalate

In anticipation of new regulations, several large banks have updated their internal policies to make clear they do not discriminate based on political or industry affiliations. Some have even met privately with Republican attorneys general to avoid being caught in future political crossfire.

A Bank of America spokesperson told media outlets:

At the same time, banks defend their cautious approach toward crypto, citing real concerns about fraud, money laundering, and regulatory gray areas that haven’t yet been resolved at the federal level.

A Turning Point for Financial Access?

If signed, the executive order could drastically reshape how banks handle politically sensitive industries, and open up access for crypto firms, many of which have struggled to maintain basic banking services.

Supporters of the move argue it’s about fair access, not favoritism. They say it’s time to stop punishing lawful businesses for being politically unpopular or operating in emerging sectors.

As the draft awaits final review, the financial world is bracing for what could become a defining moment in the intersection of banking, politics, and cryptocurrency in the United States.