President Trump has moved to end debanking with an executive order that prohibits banks and federal regulators from denying financial services to Americans based on their personal beliefs.
Trump’s administration is following through with its promises to safeguard free expression, economic participation, and fairness in the U.S. financial system.
President Trump signs executive order to end politicized debanking
President Donald J. Trump has signed a sweeping executive order prohibiting banks and federal regulators from denying financial services to Americans based on political beliefs, religious affiliations, or lawful business activities.
The order, titled “Guaranteeing Fair Banking for All Americans,” directs federal banking regulators to eliminate guidelines and practices that facilitate what it calls “politicized or unlawful debanking.” The policy also targets the removal of the widely criticized “reputational risk” as a factor in bank decision-making.
The administration describes these guidelines as systemic abuses by financial institutions and regulators that have, in some cases, frozen payrolls, denied account openings, or refused payment processing to lawful individuals and businesses.
The White House fact sheet noted several examples of such cases including a major banking institution that denied ticket-payment processing for a Republican event and only reversed its decision after receiving backlash, federal regulators encouraging banks to flag individuals for transactions with companies like Bass Pro Shop or Cabela’s, or for using terms such as “Trump” or “MAGA” in payment descriptions without any evidence of criminal activity. Two major banks also allegedly denied services to Trump’s own business.
“The banks discriminate against conservatives, they discriminate against religion, because they’re afraid of the radical left, I suspect,” Trump said. “Nobody knows the banking industry better than me, and I’m not going to let them take advantage of you any longer.”
The executive order requires federal regulators to remove all language in their guidance and examination materials that supports politicized or unlawful debanking. It instructs regulators to review financial institutions for current or past policies encouraging such practices and take remedial actions, including fines or consent decrees. Cases of unlawful debanking based on religion are to be reported to the Attorney General.
The order instructs the Small Business Administration to push financial institutions under its jurisdiction to reinstate clients previously denied services for these reasons. Finally, it states that federal regulators should develop a comprehensive strategy to prevent such practices in the future, including potential legislative solutions.
The White House said the order also addresses issues raised during a Senate Banking Committee hearing earlier this year, where witnesses testified about being “debanked” for political or ideological reasons.
Trump opens retirement vehicles to crypto
Trump signed a second order, this one titled “Democratizing Access to Alternative Assets for 401(k) Investors,” which will allow more than 90 million American private-sector workers to invest in alternative assets, including digital assets, that have previously been available mainly to government employees and certain institutional investors.
Under the current system, many private sector workers with 401(k) accounts have access only to a limited selection of mutual funds and traditional investments.
According to Trump’s AI and crypto czar, David Sacks, who praised the announcement on social media platform X, the change will “allow more than 90 million American workers… to access the same range of alternative assets… that are available to government workers, for better returns and diversification.”
The White House said this move is designed to “level the playing field” between private and public sector workers and offer Americans more tools to achieve long-term financial security.
Digital asset advocates see the policy as a major win for the cryptocurrency industry, which has often struggled with access to traditional banking services. Within the cryptocurrency community, Trump’s orders are being viewed as a means to dismantle structural barriers that have hindered innovation and financial participation.
“No American should be denied access to financial services because of their political or religious beliefs,” the fact sheet states, adding that investment opportunities should not be “limited by outdated rules or unfair restrictions.”
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