The White House is preparing an executive order aimed at punishing banks that allegedly discriminate against conservatives, religious groups, and cryptocurrency businesses. President Trump is expected to sign the order as soon as this week, though plans may still change.
According to a draft viewed by The Wall Street Journal, the order directs federal bank regulators to investigate whether financial institutions violated laws such as the Equal Credit Opportunity Act, antitrust laws, or consumer protection laws. Violations could lead to fines, legal settlements, or other penalties.
The order reportedly responds to long-standing conservative complaints that some banks have dropped clients for political or religious reasons. It also highlights concerns about banks refusing service to crypto companies — a trend seen during the previous administration.
Trump: “Banks Discriminated Against Me”
In a recent interview, President Trump recalled being dropped by JPMorgan Chase, saying, “The banks discriminated against me very badly, and I was very good to the banks.” JPMorgan responded by saying it does not close accounts for political reasons and welcomed regulatory changes.
The draft also refers to past incidents — such as Bank of America closing the account of a Christian charity in Uganda, which the bank said was due to operating outside the U.S., not religious beliefs.
Banks Push Back
Banks have said such decisions are based on risk management, not politics. They cite concerns over money laundering laws and regulatory pressure as reasons for distancing themselves from controversial clients or industries, especially in crypto.
Recently, some banks have updated their public policies to state that they do not discriminate based on political views, in an attempt to calm tensions with regulators.
What the Order Will Do
- Regulators would be ordered to investigate banks suspected of discrimination.
- Policies contributing to account closures would need to be reviewed and potentially eliminated.
- The Small Business Administration would review banks involved in its loan programs.
- Possible legal violations would be referred to the Attorney General.
In April, the Justice Department formed a task force in Virginia to examine claims of banks denying services based on improper factors like political or religious beliefs.
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