Regulatory Shift Imminent: Trump Administration Aims to Address Cryptocurrency Discrimination Concerns

A drastic shift in the crypto regulatory landscape is imminent as the Donald Trump administration prepares to sign a new executive order aimed at punishing US banks that discriminate against cryptocurrency customers. The move comes in response to numerous instances of financial institutions closing accounts belonging to individuals or organizations with ties to the digital asset sector.

According to reports, the White House will issue an executive order directing bank regulators to investigate whether any banking institutions have violated the Equal Credit Opportunity Act, antitrust laws, and consumer financial protection laws by dropping crypto customers. The punitive measures that could be enforced on offending banks include monetary penalties, consent decrees, and other disciplinary actions.

It is no surprise that the Trump administration has taken this step, given its previous stance on cryptocurrency. Under Operation Chokepoint 2.0, banking regulators under the Biden administration were accused of unfairly targeting the crypto industry. The move represents a significant shift in the regulatory environment for US banks, which have been notorious for their reluctance to provide services to digital asset firms and individuals.

The news comes as a relief to many in the cryptocurrency sector who have been vocal about the discriminatory practices employed by some financial institutions. Coinbase CEO Brian Armstrong was one such individual who expressed his concerns on Twitter, citing instances where he was refused banking services himself.

For its part, Bank of America has defended its decision to terminate accounts related to digital assets, stating that it takes a risk-based approach and assesses legal, regulatory, and financial risks. However, this has not alleviated the concerns of many in the crypto community who feel that these actions are discriminatory.

The development could have significant implications for the cryptocurrency industry, potentially paving the way for greater integration with mainstream finance. It is too early to speculate on the impact, but it is clear that the move will lead to increased scrutiny and accountability for US banks when dealing with digital assets.

Source: cryptopotato.com