Are U.S. banks capable of stopping transactions tied to event derivative traders made for speculating at InTrade-TradeSports and MatchBook?

New York Times:

Congress to Take Testimony on Internet Gambling Ban

By Matt Richtel

The Unlawful Internet Gambling Enforcement Act of 2006 made it illegal for banks and other financial institutions to process online wagers. The goal was to find an indirect way to regulate offshore casinos [... and sportsbooks... and real-money prediction exchanges...], which are outside the jurisdiction of American law enforcement. In short: the casinos are out of reach, but not the banks in the United States that process their transactions.

The question now is whether the banks are capable of stopping the transactions. [...] Under the gambling act, the Treasury Department and the Federal Reserve were charged with coming up with rules that financial institutions would be required to follow to block gambling transactions. [...]

Congressman Barney Frank, the Massachusetts Democrat, is the chairman of the House Committee on Financial Services. He is also the author of a bill that would legalize and regulate Internet gambling – a law that would essentially override the Unlawful Internet Gambling Enforcement Act. [...]