The US Government is in the process of drafting an executive order that would impose penalties on banks for terminating customers based on political affiliations, according to a report by the Wall Street Journal cited by Reuters.

The order would instruct regulators to investigate potential breaches of the Equal Credit Opportunity Act, antitrust laws, or consumer financial protection laws by financial institutions.

If signed, the order could be enacted as early as this week and would empower regulators to impose monetary penalties, consent decrees, or other disciplinary actions against banks found in violation.

Additionally, the order seeks to eliminate policies that may have led to banks severing ties with certain customers and mandates the Small Business Administration to review the practices of banks that guarantee its loans.

The White House has refrained from commenting on the report when approached by Reuters.

In January, President Donald Trump accused the CEOs of JPMorgan Chase and Bank of America of denying banking services to conservative clients, a claim the banks have denied.

This criticism from Wall Street banks has emerged amid allegations from congressional Republicans and Republican-led states, who assert that these institutions are engaging in “woke capitalism” by cutting ties with gun manufacturers, fossil fuel companies, and other businesses perceived to align with the political right.

The Trump administration is actively pursuing a comprehensive reform agenda aimed at altering regulations governing financial institutions, including capital requirements, with the intention of fostering economic growth and encouraging innovation.