- The Trump White House is preparing an Executive Order to punish banks for discrimination
- The move is seen as a major win for crypto firms that have faced “de-banking”
- Binance’s CZ said the upcoming order will “open banking for crypto internationally.”
The Trump administration is preparing a new Executive Order that will reportedly fine banks for discriminating against clients based on their political views, a move Binance co-founder Changpeng Zhao (CZ) is hailing as a major breakthrough for the crypto industry.
Binance co-founder Changpeng Zhao (CZ) has applauded a new Executive Order from U.S. President Donald Trump aimed at enabling the mainstream adoption of crypto. CZ noted that the order, which reportedly fines banks for discriminating against crypto firms, is a major step in allowing global banking institutions to embrace digital assets.
According to the report from The Wall Street Journal, the White House is in the process of drafting the order, and from a tweet from market commentator Paul Barron, a White House official has confirmed on a new soon-to-be signed Executive Order.
Related: Chokepoint 3.0? a16z Says Big Banks Are Quietly Strangling Crypto and Fintech Rivals
Reacting to the news on X, CZ explained why this is such a critical development, noting:
“It used to be that corresponding banks in the US block transactions involving crypto (fiat for buying crypto). This opens banking for crypto internationally.”
Clear Reversal of Past Crypto Policies
The planned Executive Order would mark a complete reversal of the “Operation Choke Point 2.0” period between 2022 and 2023. During that time, federal agencies like the FDIC and OCC pressured banks to cut ties with crypto firms, a move that intensified after the collapse of crypto-friendly banks like Silvergate and Signature.
Major banks led by JPMorgan blocked crypto-related transactions, especially to crypto exchanges, after the collapse of Silvergate Bank and Signature Bank, which were heavily used in the crypto space. However, new crypto regulations and Executive Orders in the United States have changed the narrative about Operation Choke Point 2.0.
For instance, President Trump appointed crypto-friendly regulators in key positions led by SEC Chairman Paul Atkins, crypto Czar David Sacks. Both the Securities and Exchange Commission and the Commodity Futures Trading Commission (CFTC) have unveiled initiatives to implement the President’s Working Group on Digital Asset Markets report.
Global Impact of the US Crypto Policy
With the United States controlling around 25% of the global economic activities, more nations are likely to follow in the same path of enabling mainstream adoption of digital assets. For instance, Hong Kong’s stablecoin bill went into effect at the beginning of this month, which followed the enactment of the GENIUS Act in the United States.
Related: Binance CEO: From ‘Scam’ to ‘Next Big Thing’—How Institutions Flipped on Crypto
Nigeria’s SEC Director-General Dr. Emomotimi Agama, previously stated that the country is open to stablecoins innovation to foster economic growth.
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