President Donald Trump is set to issue an executive order that would pressure banks not to discriminate against conservatives and crypto companies.
The Wall Street Journal reported the Trump administration is preparing an executive order that would direct bank regulators to investigate if financial institutions have violated the Equal Credit Opportunity Act, antitrust laws, or consumer financial protection laws. Institutions that may have violated those laws could be subject to monetary penalties or consent decrees.
The order also calls for sending potential violations to the attorney general; the Justice Department in April said it launched a task force to examine allegations of debanking based on “impermissible factors.”
The draft order appears to refer to an instance where Bank of America allegedly shut down the accounts of a Christian organization in Uganda based on the organization’s beliefs; the bank said it shut down the accounts because it does not serve small businesses working outside of the country.
The order also targets some banks that may have participated in an investigation into the January 6, 2021, protests.
Banks face legal, regulatory, and financial risks that often stem from America’s anti-money laundering laws as well as informal guidance on issues such as “reputational risk” to push banks to deplatform those they may view as risky.
Conservatives have long accused banks of denying them service for political or religious reasons.
The FDIC (Federal Deposit Insurance Corporation), OCC (Office of the Comptroller of the Currency), and Fed (Federal Reserve) have announced that they would not use reputational risk in their regulatory framework; however, legislation would be needed to codify this into law.
The Breitbart News Fight Club detailed five ways that the Trump administration could stop government-led debanking.
“We’ve provided detailed proposals and will continue to work with the administration and Congress to improve the regulatory framework,” a Bank of America spokesman said, welcoming the regulatory clarity.
A JPMorganChase spokesperson said that the bank supports fair access to banking services and does not close accounts based on political or religious beliefs.
“We don’t close accounts for political reasons, and we agree with President Trump that regulatory change is desperately needed. We commend the White House for addressing this issue and look forward to working with them to get this right,” a JPMorganChase spokesperson said.
Sean Moran is a policy reporter for Breitbart News. Follow him on X @SeanMoran3
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