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In a move that could shake the foundations of traditional finance, the White House is reportedly preparing an executive order aimed at penalizing banks that discriminate against crypto firms. This sweeping decision could drastically change how banks interact with the digital asset space—and Binance founder Changpeng Zhao believes it’s a breakthrough.
The former Binance CEO, widely known as CZ, called the move a “global breakthrough” for the United States, claiming that banks will soon be unable to ignore the growing crypto sector. The announcement follows increasing frustration over debanking practices that have slowed adoption for years.
A White House Order With Major Implications
According to reports, the Biden successor administration—currently led by former President Donald Trump—plans to issue an executive order targeting financial institutions accused of blocking access to services for crypto-related firms or politically conservative organizations.
While the order is still in draft form, the impact could be immediate. Banks that continue to drop clients for ideological or political reasons may face penalties, regulatory investigations, and even lawsuits. The aim is to stop banks from using tactics that critics say unfairly shut out crypto companies under the guise of compliance risk or reputational concerns.
“Get ready for the floodgates to open,” said crypto investor Paul Barron. “Institutional money is coming.”
Changpeng Zhao Applauds the Executive Action
CZ, who stepped down from Binance’s leadership amid legal scrutiny last year, took to social media to express his support. He said the proposed White House action would compel every major bank to “embrace” the crypto industry.
While he no longer leads Binance, CZ remains one of the most influential voices in crypto. His endorsement of the executive order signals a turning point for blockchain entrepreneurs who have long struggled to gain access to basic banking services in the US.
Why Banks May Soon Have No Choice
The draft executive order reportedly directs US bank regulators to review financial institutions that engage in debanking practices. If a bank is found to have closed accounts or denied services based on political beliefs or crypto affiliations, regulators may launch investigations under several laws, including:
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The Equal Credit Opportunity Act
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Antitrust regulations
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Consumer Financial Protection laws
Banks found guilty could be subject to:
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Monetary fines
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Consent decrees
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Regulatory disciplinary actions
Even more importantly, regulators would be expected to refer egregious cases to the US Attorney General, setting the stage for federal enforcement actions.
This kind of federal oversight hasn’t been seen before in the context of crypto banking.
Controversy Over Bank of America Example
While no banks are named directly in the draft, a widely cited case involving Bank of America (BofA) highlights the issue. According to reports, BofA shut down the account of a Christian nonprofit operating in Uganda. The bank claimed it had decided to avoid small businesses functioning outside the US. However, under the new executive order, this could be seen as discrimination based on political or religious views.
This is exactly the kind of action the Trump administration seeks to prevent going forward.
Targeting Chokepoint 2.0 Tactics
The move is being referred to in some circles as a crackdown on “Chokepoint 2.0,” a reference to earlier government strategies that allegedly pressured banks to avoid entire industries, including firearms, payday lending—and now crypto.
Critics argue that large financial institutions like JPMorgan and Citigroup have used regulatory pressure as an excuse to isolate crypto companies. High transaction fees, restricted access to banking services, and biased compliance standards are all part of the playbook that this executive order seeks to dismantle.
If passed, the new order would force:
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Regulatory bodies to investigate biased practices
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The Small Business Administration to review bank loan discrimination
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Federal agencies to adjust policies ensuring fair crypto access
Could This Be Bigger Than the Bitcoin ETF Approval?
Some analysts are already calling this one of the most significant moves for crypto in years—possibly more impactful than the approval of spot Bitcoin ETFs.
ETFs opened the door to retail and institutional investors alike. But this new executive order, if signed, would break down one of the last major barriers to full-scale adoption: access to traditional banking.
With fewer restrictions, crypto companies could freely raise capital, process payments, and operate with confidence in one of the largest financial systems in the world.
What Comes Next?
As of now, the executive order remains in draft form. The administration could delay, revise, or even abandon it altogether depending on political considerations. However, insiders believe the order could be finalized within days.
Whether or not it becomes law, the proposal itself is already having ripple effects across the financial world.
For Changpeng Zhao and others in the industry, the message is clear: crypto is no longer a fringe experiment. It’s now a part of mainstream financial infrastructure—and the banks, whether they like it or not, must adapt.
