Trump considers executive order to penalize banks blocking crypto companies

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US President Donald Trump is reportedly preparing to sign an executive order aimed at curbing discrimination against the crypto industry by US banks, the Wall Street Journal reported on Aug. 4.

According to sources familiar with the matter, the order would introduce fines for banks that block transactions involving crypto companies.

This measure would address a longstanding issue in the crypto sector, where US correspondent banks have often refused to process transactions related to digital assets, particularly those involving the conversion of fiat to crypto.

The report also stated that the executive order could include monetary penalties and other forms of discipline for banks that engage in crypto discrimination.

This potential executive order is part of Trump’s broader agenda to position the US as the undisputed leader in the global digital asset market.

Since the beginning of the year, the Trump administration has worked to provide clarity on issues such as crypto registration, custody, trading, and record-keeping. These efforts are designed to create an environment that fosters innovation and consumer access to crypto products by simplifying regulations and cutting through bureaucratic red tape.

What does this mean for crypto?

Binance founder Changpeng Zhao highlighted the significance of this potential order, noting that it could open up banking services to crypto businesses globally.

According to him:

“It used to be that corresponding banks in the US block transactions involving crypto (fiat for buying crypto). This [potential order] opens banking for crypto internationally.”

Crypto advocates like Gabor Gurbacs of Pointsville have suggested creating an anonymous tool or website to flag instances of de-banking and bank discrimination against crypto businesses and individuals.

Other community members noted that the executive order comes in response to growing concerns that US banks are launching “Operation Chokepoint 3.0,” a perceived initiative to block access to financial services for crypto entities.

Last month, Gemini co-founder Tyler Winklevoss criticized JPMorgan’s decision to charge fintech firms for access to customer banking data.

Winklevoss argued that such actions could financially cripple fintech companies that facilitate crypto purchases, claiming it is an attempt to limit consumer access to banking data via third-party platforms like Plaid.

He stated:

“Jamie Dimon and his cronies are trying to undercut President Trump’s mandate to make America the pro innovation and the crypto capital of the world. We must fight back!”