White House Order Could Force Banks to Accept Crypto

U.S. government might finally be pulling a page from the crypto playbook. Binance founder and former CEO Changpeng Zhao (CZ) is celebrating what he’s calling a global breakthrough for crypto in the U.S., and honestly, we might want to keep our eyes peeled for what’s coming next.

The White House has been working on an executive order aimed at forcing banks to stop discriminating against crypto companies. And this isn’t some slap-on-the-wrist kind of deal, we’re talking about financial penalties for banks that decide to be all anti-crypto. This could be the real catalyst for institutional adoption that crypto enthusiasts have been waiting for.

According to investor Paul Barron, "This would force every major bank to embrace crypto companies. Get ready for the floodgates to open – institutional money is coming." We love the sound of that. If this gets through, it could be the game-changer crypto has been itching for since, well, the Bitcoin ETFs.

Big Banks Feeling the Heat from Washington

While Binance’s CZ is all for it, calling it a win that ensures banks can’t keep ignoring crypto, it’s not all clear skies just yet.

The order compels regulators to dig into bank practices and see if they’ve violated laws like the Equal Credit Opportunity Act or consumer protection laws. If they have, penalties could range from fines to even more severe measures. Let’s just say, it’s not a small slap on the wrist.

So far, the draft doesn’t call out any specific banks, but it does mention Bank of America’s alleged past move of shutting down a conservative Christian organization’s accounts for its religious beliefs. It's interesting because, under Trump’s order, that might’ve counted as political discrimination, and you don’t want to mess with that.

But, here’s where things get juicy. Big banks like JPMorgan have been accused of using tactics to suppress crypto growth, including jacking up fees and limiting access to platforms like Coinbase and Robinhood. This is where the so-called "Operation Chokepoint" tactics are coming in, trying to suffocate the competition. And if that’s true, this White House order could be just what’s needed to put the brakes on those dirty tricks.

What does all this mean? If the executive order goes through, banks would be under a lot of pressure to change their policies, and the Small Business Administration would have to start reviewing how they handle loans. You don’t want to mess with the SBA, either.

So, will this finally force the banking industry to roll out the red carpet for crypto? Maybe. Either way, the battle lines are drawn, and things are about to get interesting.

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