Trump Administration Eyes Order to Curb Debanking by Major US Banks

The Trump administration is reportedly considering issuing an executive order to address the issue of "debanking," a practice where banks terminate or restrict the accounts of certain customers, often without clear explanation or recourse. This development comes as major U.S. banks, including JPMorgan Chase, Citigroup, and Bank of America, have been under scrutiny for their involvement in such practices.

During recent meetings with Republican state leaders, these banks responded to allegations of "debanking." The practice has raised concerns about the arbitrary use of power by financial institutions and regulators, with some comparing it to "pure, silent government power."

In November, Marc Andreessen, co-founder of venture capital firm a16z, highlighted the issue during a podcast. He revealed that over the past four years, at least 30 tech company founders had their bank accounts secretly debanked by U.S. regulators. These individuals received no warning or explanation and had no right to appeal or seek recourse. The affected individuals included prominent figures in the tech industry, with the related video being shared by influential figures such as Elon Musk, Coinbase founder Brian Armstrong, and Binance CEO Changpeng Zhao.

Brian Armstrong expressed a desire to uncover the full circumstances of those involved and whether they violated any laws. The potential executive order from the Trump administration aims to address these concerns and provide more transparency and accountability in the banking system. The move is seen as a response to growing criticism of the practice and its impact on individuals and businesses.