The U.S. government has issued a new executive order that seeks to ensure that digital asset companies are discriminated against when it comes to banking practices, a move that, should it prove successful, could redefine the way that the traditional world of finance operates in regards to the crypto black market. This follows years of increasing tensions between cryptocurrency companies and banks, with many refusing longer-term services and even closing accounts with little to no explanations, related to blockchain-based businesses.
The 2025 executive order signals an important change of position by the U.S. government towards access to financial services by crypto. As regulators struggle between innovation and financial stability, this move means that there is a greater understanding that crypto should be allowed to take its rightful place at the financial table.
Why Crypto Businesses Are Being Dropped by Banks
For years, crypto entrepreneurs have faced a silent but growing challenge: banking discrimination. Despite being legal and often well-regulated, many crypto businesses—especially smaller startups—have found themselves “de-banked” without warning. This means losing access to business accounts, payment rails, and lending services essential for day-to-day operations.
The problem stems from a mix of perceived risk, regulatory uncertainty, and remnants of Operation Choke Point–style behavior, where financial regulators indirectly pressured banks to avoid serving industries deemed “high risk.” By 2023 and 2024, this quietly escalated into what many dubbed
Operation Choke Point 2.0, with banks dropping even compliant crypto firms citing vague “risk management” policies.
What the Executive Order Says
Signed in July 2025, the new Executive Order on Fair Financial Access for Digital Asset Companies lays out strong protections for crypto firms that have been unfairly denied banking services.
Key provisions include:
- Non-Discrimination Mandate: Banks cannot deny services solely due to a business’s involvement in legal digital asset activities.
- Justification Requirement: Banks must provide written, detailed reasons when closing or refusing accounts to crypto firms.
- Transparency Measures: Financial institutions must publish risk assessment criteria related to crypto.
- Oversight Mechanism: The Treasury Department, FDIC, and OCC are tasked with monitoring and publicly reporting patterns of crypto-related account closures.
- Penalties: Banks found engaging in systemic de-banking without valid justification may face fines or regulatory action.
The order is set to be fully implemented by Q4 2025, with the first public compliance audit scheduled for January 2026.
Why the Government Is Acting Now
The executived order didn’t emerged in a vacuum. Pressure had been mounting from severals directions:
- Crypto Industry Lobbying: During the fourth quarter of 2024, the big players, including Coinbase, Circle or the Blockchain Association, became more active on their lobbying, with a view of new unfair practices in the banking industry.
- Economic Competitiveness: U.S legislators saw the effect of financial exclusion as causing a loss of innovation to offshore financial centers such as the UAE, Singapore and Switzerland.
- Political Support: An unprecedented bipartisan agreement was attained as Republican and Democratic members voted in favour of financial fairness and thinking of crypto innovation.
- National Security & Surveillance: Ironically, even the intelligence agencies of the U.S. came in support of the order, as per them, the de-banking process leads to driving activity underground, and makes it hard to monitor transactions.
Industry and Public Reactions
The crypto community has largely welcomed the executive order.
“This is a watershed moment. Finally, crypto companies in the U.S. are being treated like any other legal business,” said Kristin Smith, CEO of the Blockchain Association.
Coinbase called the order a “milestone in crypto policy,” while decentralized protocol builders saw it as a green light to keep innovating in the U.S. market.
Banking institutions, on the other hand, are divided. Some regional banks supportive of fintech welcomed the clarity. But major traditional banks have voiced concerns over “regulatory overreach” and warned of increased compliance burdens.
Public opinion, especially within the broader tech and finance communities, has leaned favorably. Social media has seen hashtags like #BankFairCrypto and #LetCryptoBank trending across X and Reddit.
What This Means for the Crypto Ecosystem
The implications are broad and potentially transformative:
Short-Term Effects
- Easier access to essential banking services for crypto startups.
- Improved operational stability for exchanges, stablecoin issuers, and custodians.
- Reduced fear of sudden de-platforming.
Long-Term Outlook
- Greater institutional adoption as financial rails become more stable.
- Encouragement for traditional banks to build crypto-friendly products.
- Potential growth in crypto-fintech partnerships and neobanking solutions.
- A stronger foothold for U.S.-based Web3 projects in global markets.
Challenges and Criticism
Not everyone is celebrating. Critics argue that:
- The order may erode private banks’ discretion in risk management.
- The definition of “unjustified discrimination” remains vague, leaving room for legal gray areas.
- Smaller banks could face higher compliance costs, which may ironically discourage them from serving crypto clients altogether.
Furthermore, the order does not eliminate regulatory risks for crypto firms. AML/KYC compliance, tax obligations, and securities law remain top concerns.
Conclusion
The 2025 executive order marks a pivotal moment in U.S. crypto policy. By holding banks accountable for unfair treatment of crypto companies, the government is signaling a more balanced and innovation-forward approach to financial regulation.
This move not only benefits the crypto industry but also strengthens America’s position in the rapidly evolving world of digital finance. While challenges remain, the door is now open for a more inclusive, transparent, and accountable financial system.