Banks Could Face Fines for ‘De-Banking’ Crypto Firms Under White House Order: Report
Main Idea
The White House is preparing an executive order that would penalize banks for 'de-banking' crypto firms, aiming to address longstanding complaints in the cryptocurrency sector.
Key Points
1. The draft order directs the Small Business Administration (SBA) to review bank loan guarantees, which could impact crypto firms.
2. Banks have defended their actions by citing risk and anti-money laundering (AML) regulations, making it difficult to onboard crypto clients.
3. The issue of 'de-banking' has been a persistent complaint among crypto companies, with banks quietly cutting ties due to regulatory pressures.
4. The order is part of broader regulatory shifts and could increase pressure on banks to reconsider their policies toward crypto firms.
5. The Justice Department has established a task force to investigate claims related to de-banking practices.
Description
The White House is reportedly preparing an executive order that would penalize banks for dropping customers over political or ideological reasons, in a move aimed at curbing what conservatives and crypto firms have long called financial discrimination. A draft of the order, viewed by The Wall Street Journal , instructs bank regulators to investigate whether financial institutions have breached laws like the Equal Credit Opportunity Act, antitrust statutes or consumer protection rules. Banks foun...
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