Trump Plans Executive Action to Protect Cryptocurrency Businesses from Bank Disassociation: WSJ Report
President Trump Signs Executive Order to Combat Discriminatory Banking Practices
President Donald Trump signed an executive order on August 7, 2025, titled "Guaranteeing Fair Banking for All Americans," aimed at protecting cryptocurrency companies and conservative organizations from alleged discriminatory banking practices, commonly known as "debanking."
The order mandates federal agencies and regulators to review past and current banking practices within 120 days to identify and remedy instances where banks have denied or restricted services based on political or religious beliefs or lawful business activities.
Key details of the executive order include:
- Banning financial institutions from denying services on the grounds of political beliefs, reputational risk, or the nature of lawful businesses. This significant move affects crypto startups, gun manufacturers, and conservative organizations.
- Eliminating the use of "reputational risk" as a supervisory tool by federal regulators, a practice criticized for being used to pressure banks into shutting out certain customers or industries deemed politically disfavored.
- Potential enforcement measures against banks that violate the order, including referrals to the Department of Justice for civil or criminal investigations, fines, or other penalties.
- Directing the Small Business Administration to notify and reinstate businesses or individuals affected by unlawful debanking.
The order also coordinates with state-level fair access laws and initiatives that restrict banking discrimination based on political or religious beliefs, demonstrating a broader regulatory push against debanking practices.
Congressman Andy Barr announced plans to introduce legislation to codify the executive order permanently, reinforcing protections for conservatives and crypto companies against politicized banking discrimination.
However, concerns remain about banks potentially selectively complying and the broader implications for financial stability and regulatory oversight. Even Alex Chandra, partner at IGNOS Law Alliance, stated that executive orders can only enforce existing laws, not create new protections.
The order would also review how the Federal Reserve handles access to critical banking infrastructure for crypto firms. The FDIC has already released multiple documents revealing efforts to discourage banks from serving crypto companies, with Coinbase's chief legal officer, Paul Grewal, accusing the FDIC of systematic obstruction.
The order targets incidents such as Bank of America closing accounts of a Christian organization in Uganda, which the bank attributed to its policy against serving small overseas businesses. President Trump, who has personally experienced banking discrimination, stating that "big banks were very nasty to us" during Biden's presidency, emphasizes the need for such a policy shift.
This executive order represents a significant policy shift intended to improve access to banking services for political conservatives and specific industries like cryptocurrency, which have claimed difficulties in securing banking relationships due to alleged politically motivated discrimination.
- The executive order signed by President Trump on August 7, 2025, seeks to protect cryptocurrency companies from alleged discriminatory banking practices.
- The order mandates a review of banking practices within 120 days to address instances where banks have restricted services based on lawful business activities, including those involved in crypto, gun manufacturing, or conservative organizations.
- The legislation, if introduced by Congressman Andy Barr, aims to codify the executive order, reinforcing protections for conservatives and crypto companies against politicized banking discrimination.
- The order also targets the Federal Reserve's handling of access to critical banking infrastructure for crypto firms, following reports of efforts to discourage banks from serving crypto companies.
- The executive order is intended to improve access to banking services for political conservatives and specific industries like cryptocurrency, which have faced difficulties in securing banking relationships due to alleged politically motivated discrimination.
