U.S. President Donald Trump will sign an executive order on Thursday directing federal banking regulators to identify financial institutions engaged in “revocation”.
according to On Thursday, regulators will be asked to review complaint data, and under the authority of the Small Business Administration, regulators will be required to work to restore customers who illegally deny banking services.
In some political groups, withdrawal is a key issue, who believe businesses such as gun manufacturers and fossil fuel companies have been denied banking services for ideal reasons.
This is also a common complaint from crypto companies. During the administration of former President Joe Biden, a “Operation Chokepoint 2.0“, some believe this is an attempt to push the cryptocurrency business to sea during the 2022 bear market.
https://www.youtube.com/watch?v=ddvtoz5kqt4
Despite the change in tone under the Trump administration, The allegations of revocation continue.
According to Bloomberg, the executive order will direct regulators to eliminate the “reputation risk” category from guidance and training materials. Critics say the category is used to unfairly target crypto companies.
Related: From withdrawal to bank arms race: The rise of Stablecoins
A group of banks try to block crypto bank applications
As the Trump administration works to end the withdrawal, a powerful group of bank associations have tried to prevent various crypto companies, including Ripple, from obtaining bank licenses.
according to Letter to the Office of the Auditor General of Currency, dated July 17, the American Banking Association, Consumer Bankers Association, National Bankers Association, U.S. Credit Union and U.S. Independent Community Bankers seek to block bank applications from four digital asset providers, including Ripple and Fidelity.
In their letter, the association stated: “There are significant policy and legal issues regarding whether the business plan proposed by the applicant involves the type of trust activities conducted by the National Trust Bank.” In addition, the association claimed that “the public portion of the application does not allow for meaningful public review.”
Ripple, the creator of cryptocurrency XRP (XRP), Apply for a bank license on July 2. Application was a few days after Circle, the creator of Stablecoin USDC (USDC) Apply to establish a national trust bank to manage its stable reserves.
These applications highlight the growing overlap between traditional financial institutions and local crypto companies, thus exacerbating competition across the financial services industry.
Stablecoin, in particular, introduced new forms of payment, which could conflict with the infrastructure provided by traditional banks and credit card companies. The Genius Act, the United States Act, aims to regulate stable people and their issuers, Signed into law on July 18.
Magazine: Legal Group: XRP Win Leaves Ripple A “Bad Actor” Without Crypto Legal Precedent
