New White House Directive May Penalize Banks For Discrimination Towards Crypto Companies

The White House is working on an executive order that could impose fines and penalties on banks that close customer accounts for political motives. The preliminary order may be signed as soon as this week.

This executive order will serve as a definitive directive for federal regulators to take action. It directs agencies to exercise their full authority to investigate and penalize discriminatory banking practices.

As reported by the Wall Street Journal on August 4, 2025, the White House “is set to escalate scrutiny of banks over alleged discrimination against conservatives and cryptocurrency firms through an executive order that threatens to penalize lenders who drop customers for political grounds.

According to the article, “A draft of the executive order instructs bank regulators to explore whether any financial entities may have breached the Equal Credit Opportunity Act, antitrust laws, or consumer financial security statutes.”

Exclusive: The White House is preparing to ramp up scrutiny of major banks regarding alleged discrimination against conservatives and crypto companies with an executive order https://t.co/Flha5sPtCN

— The Wall Street Journal (@WSJ) August 4, 2025

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Violating Banks Could Face Serious Repercussions

Financial institutions have been accused of “de-banking” or withholding services, or terminating accounts for non-financial reasons. Banks found to be in breach could incur monetary fines, consent decrees, and various other penalties. 

The order also enables regulators to refer particular cases of alleged violations to the US Attorney General for further legal action.

Though the draft executive order does not specify any particular banks, it addresses incidents that have attracted public backlash.

Moreover, a recent White House report advocates for the CFTC to receive explicit authority over digital currency exchanges dealing with non-security tokens. It encourages regulators to finally resolve the discussion surrounding stablecoin regulations and self-custody protections. A notable recommendation is the CLARITY Act, designed to eliminate jurisdictional disputes between agencies.

Read More: Morgan Stanley To Initiate Crypto Trading: Are Banks Listening to Eric Trump’s Warning?

Are Banks Responding To Eric Trump’s Warning?

On May 1, 2025, Morgan Stanley announced its intention to introduce crypto trading via its E-Trade network. The bank aims to launch these crypto services in 2026, although the project is still in its early stages. Additionally, Morgan Stanley is contemplating collaborations with one or more established crypto companies to facilitate its brokerage clients’ buying and selling of trending tokens like Bitcoin and Ether.

Significantly, this initiative comes as Eric Trump, Executive Vice President of the Trump organization and the son of US President Donald Trump, has issued a warning about the potential extinction of traditional banks.

The financial landscape, particularly traditional banking, is undergoing a profound transformation, with digital assets and decentralized finance (DeFi) earning the trust of users.

Eric Trump has taken a stance: “There’s nothing that can be done on blockchain that can’t be done better than the way that the current financial institutions are working,” he commented. “The modern financial system is inadequate, it’s slow, it’s costly.”

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