White House Plans Fines for Banks Blocking Crypto Firms

The White House is set to issue an executive order targeting banks that unfairly deny services to cryptocurrency firms, a move to bolster the U.S. crypto industry. The directive, reported by The Wall Street Journal, aims to curb de-banking practices where banks close accounts or refuse services to crypto businesses without clear justification, stifling innovation.

The draft order instructs regulators, including the Federal Reserve, FDIC, and OCC, to investigate violations of laws like the Equal Credit Opportunity Act and consumer protection statutes. Banks found discriminating against crypto firms could face fines, consent decrees, or other penalties. This follows claims of systemic bias, with firms like Coinbase and Frax Finance reporting account closures by banks like JPMorgan Chase in 2023.

The initiative aligns with President Trump’s pro-crypto agenda, building on his January 2025 executive order to end Operation Choke Point 2.0, which allegedly pressured banks to shun digital asset firms. The order also directs the Small Business Administration to review loan guarantee practices, vital for crypto startups.

Industry leaders, including Kraken’s CEO, praise the move for fostering fair financial access, potentially boosting U.S. blockchain innovation. Critics, however, warn that easing banking restrictions could complicate anti-money laundering (AML) compliance, citing 2023 illicit crypto volumes of $46.1-$58.7 billion.

The order, expected within weeks, may include public consultations and could influence 2026 election debates. As the U.S. aims to lead in digital assets, this policy signals a shift toward a more inclusive financial ecosystem, balancing innovation with regulatory oversight.