Trump Prepares To Impose Penalty On Banks Found To Discriminate Against Conservatives, Crypto Firms: Report

The White House is preparing an executive order to impose penalties on banks allegedly discriminating against conservatives and cryptocurrency firms, according to a report on Monday.

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Order Targets ‘Discriminatory’ Policies

The executive order could impose fines on financial institutions that sever ties with customers for political reasons, The Wall Street Journal reported. The draft order directs regulators to investigate whether any banks have violated the Equal Credit Opportunity Act, antitrust laws or consumer financial protection laws.

The order might be signed as early as this week, the report said, citing people familiar with the matter, but there could be delays or alterations to the administration’s plans.

The White House didn’t immediately return Benzinga’s request for comment.

Tussle Between Crypto Industry And Regulators To End?

The tension between banks and the cryptocurrency industry escalated during the Biden administration, with cryptocurrency behemoth Coinbase Global Inc. COIN accusing the Federal Deposit Insurance Corporation of instructing banks to halt or refrain from offering cryptocurrency-banking services. The company sued the regulator last year for failing to comply with Freedom of Information Act requests.

An FDIC spokesperson told Benzinga earlier that Coinbase executives misinterpreted their guidance to banks.

However, things appear to have taken a significant turn under President Donald Trump. The SEC repealed a cryptocurrency accounting directive earlier this year that prevented banking institutions from providing custodial services for digital assets.

Notably, both the Senate and the House voted unanimously to overturn the directive last year. However, the resolution was vetoed by the White House under former President Joe Biden.

The SEC launched a new initiative called "Project Crypto" last week, aimed at revamping securities regulations to accommodate blockchain-based financial systems.

The COIN stock rose 1.11% to $318.17 during Monday’s regular trading session. As of this writing, it ranked higher on the Momentum and Value rankings. Compare the stock’s performance with “Mag 7” firms, using the Benzinga Edge Stock Rankings.