U.S. Executive Order to Cease Bank Crypto Barriers, According to CZ
The U.S. government has taken a significant step towards integrating the crypto industry into mainstream banking with a new Executive Order signed by President Trump on August 7, 2025. This order aims to guarantee fair access to banking for all Americans, including cryptocurrency firms, by combating "politicized or unlawful debanking."
The Executive Order directs federal agencies to review past practices where financial institutions denied or restricted services based on customers' political views, religious beliefs, or lawful business activities, often affecting crypto companies. This move expands ongoing efforts to prohibit discriminatory banking practices and remove “reputational risk” considerations from supervisory enforcement that pressured banks to avoid crypto and other controversial sectors.
The order promotes a sound, predictable banking regulatory framework that embraces blockchain technology, enabling banks to serve digital asset customers without excessive regulatory fear. It encourages financial regulators to clarify permissible activities such as custody of digital assets, tokenization, stablecoin issuance, and blockchain use by banks, thus easing access to banking services for crypto firms.
Addressing longstanding issues, the order aims to reduce arbitrary denials of banking services based on political or reputational considerations and foster broader acceptance of digital asset businesses in the traditional financial system. A federal review within 120 days of past debanking policies and practices is also triggered, potentially leading to regulatory changes that safeguard crypto firms' access to U.S. banking.
The impact of this policy change could be significant, particularly in regions where banks rely on U.S. partners to process crypto-related transfers. By setting a precedent for non-discriminatory banking practices and establishing clearer regulatory frameworks domestically, the U.S. Executive Order could encourage other countries to adopt similar policies. This would improve global banking access for crypto companies, fostering broader acceptance of digital asset businesses in the traditional financial system.
Analyst Paul Barron views the move as the biggest regulatory catalyst since the approval of Bitcoin ETFs, predicting a surge in institutional money entering the crypto market. Changpeng Zhao (CZ), founder of Binance, believes the situation regarding banks and crypto will change due to this new order, suggesting it could open banking for crypto internationally.
In summary, the Executive Order is a significant step toward integrating crypto firms into mainstream banking by prohibiting biased debanking practices and modernizing regulatory frameworks. This could potentially accelerate institutional adoption of cryptocurrency and encourage more banks to serve crypto clients.
- The Executive Order signified a progressive step in the financial sector, advocating for the inclusion of cryptocurrency firms into mainstream banking.
- The order aims to foster a sound, predictable regulatory framework that can facilitate the use of blockchain technology within banking, benefiting digital asset customers.
- By providing clarity on permissible activities like digital asset custody, tokenization, stablecoin issuance, and blockchain usage by banks, this order could ease access to banking services for crypto firms.
- The new policy could instigate regulatory changes that safeguard crypto firms' access to US banking, potentially leading to a surge in institutional adoption of cryptocurrency.
- Analysts predict that this regulatory change, comparable to the approval of Bitcoin ETFs, could encourage more institutional investments in the crypto market, and potentially influence other countries to adopt similar policies worldwide.
