President Trump Signs Executive Order to Prohibit Politicized or Unlawful Debanking
by Worthy News Washington D.C. Bureau Staff
(Worthy News) – President Donald J. Trump on Thursday signed an Executive Order to ensure that federal regulators do not promote policies or practices allowing financial institutions to deny or restrict services based on political beliefs, religious beliefs, or lawful business activities, guaranteeing fair access to banking for all Americans.
The order directs federal banking regulators to remove “reputational risk” and similar concepts that have enabled politicized or unlawful debanking from their guidance, examination manuals, and other materials. It also instructs the Small Business Administration to require all financial institutions under its jurisdiction to make reasonable efforts to reinstate clients and potential clients previously denied services due to unlawful debanking.
The Secretary of the Treasury, in consultation with the Assistant to the President for Economic Policy, is ordered to develop a comprehensive strategy to combat politicized or unlawful debanking, including potential legislative or regulatory solutions. Federal banking regulators must also review financial institutions for past or current policies encouraging such practices and take remedial actions, including fines or consent decrees. Additionally, regulators are required to review supervisory and complaint data for cases of unlawful debanking based on religion and refer them to the Attorney General.
President Trump emphasized that no American should be denied access to financial services because of political or religious beliefs, and that banking decisions must be based solely on individualized, objective, risk-based analyses. The order responds to what the administration calls systemic abuses by financial institutions that undermine free expression and economic opportunity.
Examples cited include a major bank reversing its refusal to process ticket payments for a Republican event only after public outcry, and regulators encouraging banks to flag individuals for transactions with businesses like Bass Pro Shop or Cabela’s, or for using terms such as “Trump” or “MAGA” in payments, without evidence of criminal activity. Trump noted that two major banks had denied services to his own businesses.
Earlier this year, the Senate Banking Committee held a hearing on debanking, with witnesses sharing personal accounts. Past federal initiatives such as Operation Chokepoint targeted lawful industries for political reasons, and the digital assets industry has also faced unfair debanking efforts.
“These practices erode public trust in banking institutions and regulators, harm livelihoods, freeze payrolls, and impose significant financial burdens on law-abiding Americans,” the White House said.
“The banks discriminate against conservatives, they discriminate against religion, because they’re afraid of the radical left,” Trump stated. “Nobody knows the banking industry better than me, and I’m not going to let them take advantage of you any longer… We’re going to end it.”
The administration has already moved to end Operation Chokepoint 2.0 by halting regulatory efforts that deny banking services to lawful industries, including the digital assets sector.
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