New Executive Order to Punish US Banks for Dropping Crypto Customers
Main Idea
The White House is preparing to issue an order that will penalize banks for dropping customers, including cryptocurrency companies, on discriminatory grounds, aiming to end practices like 'Operation Chokepoint 2.0'.
Key Points
1. Banks may face fines for dropping customers or financial institutions without valid reasons, with the order potentially being signed soon.
2. Cryptocurrency companies have reported being excluded from banking services on political grounds, leading to control over their assets.
3. Bank of America has proposed working with the administration and Congress to improve the regulatory framework.
4. JPMorgan Chase and other banks have been accused of debanking crypto-related figures like Coinbase CEO Brian Armstrong and Frax Finance founder Sam Kazemian.
5. Elon Musk provided evidence in November 2024 that 30 tech founders were debanked under questionable circumstances.
Description
The White House order will involve banks being fined if they drop customers for political reasons or discriminate against digital asset firms and organizations. The executive order directs bank regulators to investigate whether any banks or financial institutions might have violated the Equal Credit Opportunity Act, antitrust laws, or consumer financial protection laws, reported The Wall Street Journal on Monday. The order threatens monetary penalties, consent decrees, and other disciplinary mea...
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