Binance's founder and former CEO praised the new White House executive order, calling it a global breakthrough for crypto in the US.
According to the new directive, banks may be penalized for favoring crypto, a move that could encourage institutional acceptance.
New White House Order Could Force Banks to Accept Crypto
The White House is working on an executive order targeting banks discriminating against crypto companies and related conservative groups. This is part of the Trump administration's effort to address service denial practices. This time, Trump is using financial measures to punish violators.
Some see this as the biggest breakthrough since the approval of Bitcoin ETFs, paving the way for institutional capital.
"This will force every major bank to accept crypto companies. Get ready for institutional money - institutional money is coming," investor Paul Barron wrote.
Meanwhile, Binance's Changpeng Zhao (CZ) praised this as a way to ensure banks can no longer ignore crypto.
If the White House proceeds with the executive orders, banks refusing clients for political reasons will be penalized.
The executive order requires banking regulators to investigate financial institutions. Specifically, it directs regulators to determine whether these institutions violate the Equal Credit Opportunity Act, antitrust laws, or consumer financial protection laws.
Penalties for violations could include fines, consent agreements, and disciplinary measures at various levels.
According to the Wall Street Journal, the order is still in draft form. It could be signed this week, but the administration retains the right to delay or modify its plans.
Furthermore, the draft does not specifically name any banks. However, it references a case where Bank of America (BofA) was accused of closing an account of a Christian organization operating in Uganda based on the organization's religious beliefs.
At the time, BofA claimed this decision was about not supporting small businesses operating outside the US. Although BofA had the right to do so, the Christian organization is considered conservative under the potential Trump executive order.
Banks Face Increasing Pressure Amid Chokepoint Tactics Crackdown
If the order is passed, regulators will be required to eliminate policies that may have led to client rejection. Moreover, the Small Business Administration will have to review bank practices ensuring agency loans.
Regulators must also refer potential violations to the attorney general when necessary.
This development comes timely, just days after major US banks were accused of hindering the development of crypto platforms like Coinbase and Robinhood.
Specifically, large banks like JPMorgan were accused of deliberately increasing fees, restricting access, and genuinely weakening the crypto industry.
"If suddenly it costs $10 to transfer $100 to a Coinbase or Robinhood account, fewer people might do that. Or if it costs $10 to get a cheaper loan from a fintech company, you might be forced to accept a worse loan from JPM," Alex Rampell, General Partner at Andreessen Horowitz (a16z), expressed his concerns in a newsletter on 07/31.
As BeInCrypto has reported, these tactics reflect a new form of Operation Chokepoint aimed at suppressing competition from fintech and crypto.
