Trump Criticizes Debanking, Hints at Executive Order

President Donald Trump has expressed his disapproval of the practice of debanking, cautioning that it poses significant risks to businesses. When questioned about his plans to sign an executive order to tackle the issue, which many in the crypto community believe has negatively impacted them, Trump did not confirm but made it clear that the problem remains unresolved.

Trump raised concerns about banks denying access to services not for legal reasons but due to external pressures. He stated that the growing influence of regulators in directing banks' actions is dangerous. He blamed federal regulators, asserting that banks act under pressure and fear regulatory consequences. Trump claimed that even the presidents of the largest banks are not acting independently but are influenced by government agencies. He also mentioned that this environment has been shaped by past instructions, possibly from within the Biden administration. Trump added that he himself had experienced being shut out of the financial system, describing the system as “nasty”.

The debanking trend has been a source of ongoing concern in the crypto industry, where many founders and operators have reported their accounts being shut down without cause. Some believe this is part of a wider effort to isolate the sector. The lack of clear guidelines and the absence of formal charges against those affected have only added to industry frustration. This treatment could be seen as undermining fair access to banking and restricting growth in a sector where the United States has long held a leading position.

The Trump administration had planned to sign an executive order on debanking in March but paused the effort shortly before it could be finalised. On Friday, Trump indicated that the issue is still ongoing, without providing a definitive update on whether the order will be revived. An executive order on debanking could offer significant benefits to the crypto industry, addressing key challenges. It would help ensure crypto firms maintain reliable access to banking services, reduce uncertainty for crypto businesses, reverse exclusionary practices against the crypto sector, and ease ongoing pressures caused by current restrictive policies.

This potential move aligns with President Donald Trump’s recent shift towards crypto-friendly regulation. Notably, he supported the GENIUS Act, a bill regulating stablecoins that was recently passed by the U.S. Senate. Meanwhile, he has indicated that banks can engage in crypto activities as long as they maintain safety and financial stability.