Executive Order Directs Regulators to Investigate Alleged Political and Religious Discrimination
President Donald Trump signed an executive order Thursday aimed at curbing what he calls the “unacceptable practices” of large banks that allegedly discriminate against conservatives.
The order, which takes aim at the practice of “debanking” — the closure of accounts without clear reason — is a direct response to longstanding complaints from conservatives who believe they have been unfairly targeted by the financial system.
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The executive order directs federal banking regulators to investigate and penalize financial institutions for “politicized or unlawful debanking” under existing consumer protection laws and the Equal Credit Opportunity Act. It asserts that providing banking services should be based on “material, measurable, and justifiable risks,” not on political or religious beliefs.
A key part of the directive instructs regulators to remove the concept of “reputation risk” from their guidance and examination materials, a move that directly addresses a major concern for the crypto industry, which has also claimed it was unfairly denied access to banking services. Summer Mersinger, CEO of the Blockchain Association, hailed the order, stating it sends a “clear message” that the era of using “reputation risk” to justify financial exclusion is over.
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The issue has become personal for the President, who earlier this week claimed he was turned away from several major banks, including JPMorgan Chase and Bank of America, despite having “hundreds of millions” in cash. This experience, he said, illustrates a broader problem affecting many Americans.
The push to combat debanking is not new. It follows a similar push during the Obama administration’s “Operation Choke Point,” which sought to discourage banks from working with “high-risk” clients like firearm dealers and payday lenders. Critics of that program argued it was politically motivated and unfairly targeted certain industries.
In a related move, the President also signed a second order on Thursday to allow 401(k) investors to access a wider range of assets, including cryptocurrencies, private equity, and real estate, a decision also praised by the crypto community for expanding consumer choice.
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