Bitcoin News Today: Banks, Politics, and Crypto: How Debanking Pushed the Trumps to Bitcoin

Eric Trump, son of former U.S. President Donald Trump, has stated that his family's shift toward supporting cryptocurrencies was prompted by what he described as politically motivated actions by banks under the Biden administration. The Trump Organization faced widespread account closures by several major banks in early 2021, following the Capitol attack, according to a Wall Street Journal report. These closures left the Trump family with limited banking options, ultimately forcing them to rely on regional banks and later a newly unidentified institution [1]. Eric Trump described the experience as a turning point, revealing how he came to view the traditional financial system as fragile and susceptible to political manipulation [1].

According to Eric Trump, the Biden administration exerted regulatory pressure on banks to limit services for crypto-related businesses, compounding the impact on the Trump family’s banking relationships. This, he claimed, led to the family becoming strong advocates for cryptocurrencies. Eric Trump has publicly argued that banks must adapt to the crypto ecosystem or face obsolescence within a decade [1]. The broader financial sector has seen a trend of banks closing accounts related to crypto firms, with critics alleging these actions are politically driven rather than based on risk assessments [1].

The Trump family’s alignment with crypto has been growing more visible in recent months. Donald Trump himself launched an official memecoin, TRUMP, shortly before the 2024 presidential election. Additionally, World Liberty Financial, a company listed as offering the USD1 stablecoin, features Donald Trump as co-founder emeritus and his sons as co-founders [1]. Eric Trump’s son, Donald Trump Jr., and he are also listed as founders of American Bitcoin, a subsidiary of Hut 8 that secured $220 million to invest in Bitcoin and related infrastructure [1]. Eric Trump has denied claims that the family profited from his father’s election, but he has suggested that one of his family members might run for president in 2028 [1].

A separate executive order recently signed by President Trump aims to address the issue of “debanking,” defined as the restriction of access to financial services based on a customer’s political or religious beliefs [2]. The order mandates that federal banking regulators conduct reviews of institutions suspected of engaging in such practices and take corrective action if necessary. It also requires regulators to amend existing rules to eliminate policies that could lead to politicized decision-making in financial services. Additionally, the Small Business Administration has been directed to notify banks under its loan programs to reinstate clients who were denied services due to politically motivated reasons [2].

The executive order, however, has drawn skepticism from legal analysts. The order cites three laws—Section 5 of the Federal Trade Commission Act, Section 1031 of the Consumer Financial Protection Act, and the Equal Credit Opportunity Act—as legal grounds for enforcing these new guidelines. However, these laws do not explicitly address political bias in banking practices. Legal experts note that the Equal Credit Opportunity Act, while protecting against discrimination in lending, does not cover all banking services, and the other two statutes lack clear provisions against political bias. Prior legal challenges against similar regulations have shown that enforcing these mandates may face significant hurdles [2].

Meanwhile, the global financial landscape continues to evolve in response to the rise of digital currencies. In Europe, policymakers are reevaluating their approach to a digital euro after the U.S. passed the GENIUS Act, which regulates the $288 billion stablecoin market [3]. European Union officials are now considering whether to issue the digital euro on public blockchains, such as Ethereum or Solana, rather than private systems. The decision could influence how the euro competes with dollar-backed stablecoins and other digital assets in international finance [3]. Additionally, Poland and other European countries are grappling with the potential consequences of overly strict cryptocurrency regulations, which may hinder innovation in the fintech sector [4]. As governments worldwide refine their regulatory approaches, the future of crypto and its role in global finance remains a topic of intense debate.

Source:

[1] Eric Trump Biden turned his family pro-crypto after he weaponized banks (https://cointelegraph.com/news/eric-trump-biden-turned-his-family-pro-crypto-after-he-weaponized-banks)

[2] Five Things to Know About the “Debanking” Executive Order (https://www.arnoldporter.com/en/perspectives/advisories/2025/08/five-things-to-know-about-the-debanking-executive-order)

[3] U.S. Stablecoin Law Jolts EU Into Rethinking Digital Euro Strategy: FT (https://www.coindesk.com/policy/2025/08/22/u-s-stablecoin-law-jolts-eu-into-rethinking-digital-euro-strategy-ft)

[4] Will overregulation mean Poland and Europe miss out on crypto opportunities? (https://finance.yahoo.com/news/overregulation-mean-poland-europe-miss-131701908.html)