Former President Donald Trump has issued an executive order targeting the prevention of unfair banking practices against cryptocurrency companies. The order aims to safeguard crypto firms by promoting fair access to banking services and pushing for regulatory reforms.
The directive seeks to explicitly prevent unjustified debanking within the cryptocurrency sector. It tasks the Small Business Administration with addressing concerns related to industry debanking, a move intended to counter allegations of systematic discrimination.
Further, the order mandates the Federal Reserve to review banking infrastructure accessibility for cryptocurrency businesses. It also proposes measures to increase accountability within the financial sector regarding banking denials and closures.
The action responds to claims, particularly referencing practices under the previous administration, where institutions like Bank of America allegedly closed accounts without clear justification. Former President Trump has publicly criticized such treatment of crypto firms, characterizing it as regulatory overreach.
In light of the new policies, cryptocurrency companies are advised to proactively review their banking relationships. Ensuring compliance with updated regulatory standards is suggested to maximize benefit from the protections promoted by the executive order.