President Donald Trump is expected to sign an executive order that would tell federal agencies to look into claims that banks unfairly cut ties with crypto companies and conservative groups.
The order, which may be signed this week, would push banking regulators to check if financial institutions broke any laws by closing accounts or refusing services.
These laws include those that protect fair lending, prevent monopolies, and safeguard consumers, according to sources cited by The Wall Street Journal.
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The order also calls for regulators to remove internal rules that may have led banks to stop working with certain customers. It asks the Small Business Administration to review how banks treat small business loan programs, especially when those businesses are involved in crypto or politics.
Additionally, it points to the role some banks played during investigations into the January 6 Capitol events. It questions whether banks shared customer data too easily with government agencies.
Conservative groups said banks refuse to serve them for political reasons. The crypto industry has made similar claims, especially during the Biden presidency, when many firms said they struggled to keep or open accounts.
Banks, on the other hand, stated that they have the right to close accounts for a number of reasons. This practice is sometimes called “derisking”, and it is often used when a customer is seen as a legal or financial risk.
Some banks have responded by updating their policies to clearly say they do not deny service based on political views.
Meanwhile, Hester Peirce, the US Securities and Exchange Commission (SEC) Commissioner, recently called for stronger protection of people’s right to make private transactions. What did she say? Read the full story.
