Trump's Instruction Aimed at Banking Discrimination and Cryptocurrency De-Banking AccORDing TO A REPORT
On August 7, 2025, President Trump signed an executive order titled "Guaranteeing Fair Banking for All Americans." The order mandates a federal investigation into allegations of banks discriminating against conservatives and certain industries, including cryptocurrency firms, through practices known as "debanking."
The investigation will be led by federal banking regulators, such as the Office of the Comptroller of the Currency, Federal Deposit Insurance Corporation, and Federal Reserve Board. These agencies have been directed to remove "reputational risk" considerations from their guidance and examination manuals that may have encouraged politically or religiously motivated denial of banking services.
The order also demands that the regulators review past and current financial institution practices for unlawful debanking policies and refer offending cases to the Department of Justice (DOJ) within 120 days of the order's signing. Potential penalties, including civil or criminal fines or consent decrees, may be imposed if violations are found.
Moreover, the order requires the Small Business Administration to push financial institutions to reinstate clients who were denied services due to alleged debanking. The Treasury Department has been tasked with developing a strategy to combat such politicized debanking.
The executive order primarily invokes civil rights and anti-discrimination statutes that historically prohibit discrimination based on race, ethnicity, religion, or other protected classes. It extends this protection in banking services to include political and religious beliefs and lawful business activities such as cryptocurrency dealings. The Equal Credit Opportunity Act (ECOA), which bans discrimination in credit transactions based on race or other factors, is a critical existing law banks must comply with, although political opinion is a newer consideration under this order.
Eric Trump and the Donald J. Trump Revocable Trust have recently sued Capital One over the shuttering of hundreds of Trump-affiliated accounts, which could set a precedent for future legal actions against banks for discriminatory practices. Freedom of information disclosures by the FDIC support the claim that banks cite regulatory pressure as the reason for avoiding the crypto industry.
The White House's executive order could potentially lead to changes in banking practices towards conservatives and the crypto industry, addressing antitrust concerns related to banks' practices towards the crypto industry and regulatory pressure as a reason for banks avoiding the crypto industry.
- The federal investigation into banks' discriminatory practices, as mandated by President Trump's executive order, will be led by banking regulators like the Office of the Comptroller of the Currency, Federal Deposit Insurance Corporation, and Federal Reserve Board.
- The order directs these regulators to remove "reputational risk" considerations from their guidance and examination manuals, which may have encouraged politically or religiously motivated denial of banking services.
- The regulators have been asked to review past and current financial institution practices for unlawful debanking policies and refer offending cases to the Department of Justice (DOJ) within 120 days of the order's signing.
- If violations are found, potential penalties such as civil or criminal fines or consent decrees may be imposed.
- The Small Business Administration has been tasked with pushing financial institutions to reinstate clients who were denied services due to alleged debanking.
- The Treasury Department has been tasked with developing a strategy to combat politicized debanking, which could potentially lead to changes in banking practices towards conservatives and the crypto industry.
