The White House is about to unveil a new executive order that would punish big banks who discriminate against conservatives and crypto companies.
A draft of the order seen by the WSJ directs bank regulators to investigate whether any financial institutions may have violated the Equal Credit Opportunity Act, antitrust laws, or consumer financial protection laws – with violators facing monetary penalties, consent decrees or other disciplinary measures, according to the draft.
People familiar with the EO told the Journal that it could be signed as soon as this week, though the order could become delayed or the administration’s plans may change.
The draft order doesn’t name any specific banks but appears to refer to an instance where Bank of America was accused of shutting down the accounts of a Christian organization operating in Uganda based on the organization’s religious beliefs. The bank has said it shut down the accounts because it doesn’t serve small businesses operating outside the U.S.
The draft order also criticizes the role that some banks played in an investigation into the Jan. 6, 2021, riots at the U.S. Capitol. -WSJ
As Cointelegraph notes, conservatives have also claimed that banks have denied them services based on political beliefs.
The banking industry calls the practice “derisking,” and financial institutions have broad discretion to close accounts, whether the account holder poses a legal, financial or reputational risk to the firm.