Trump to Issue Order Targeting Crypto and Conservative Debanking Practices

Trump is reportedly preparing to issue an executive order as soon as this week that would protect cryptocurrency companies and conservative organizations from alleged discriminatory banking practices [1]. The proposed order, according to a report in the Wall Street Journal citing administration sources, would direct banking regulators to investigate potential violations of equal credit laws, antitrust statutes, and consumer protection regulations in cases where financial institutions terminate customer relationships [1]. The move is framed as a response to what critics refer to as "Operation Chokepoint 2.0," the alleged systematic denial of banking services to crypto firms and politically conservative customers during the Biden administration [1].

The order could lead to financial penalties and enforcement actions against banks found to be in violation [1]. It also calls for the Federal Reserve to review its policies regarding access to critical banking infrastructure for crypto firms and mandates the Small Business Administration to assess bank partners [1]. The draft document references specific incidents, including Bank of America’s decision to close the account of a Christian organization in Uganda, which the bank attributed to its policy against serving small overseas businesses [1].

Trump, who has previously spoken about banking discrimination, claimed in June that "big banks were very nasty to us" during Biden’s presidency [1]. He argued that federal regulators—not bank executives—were behind the alleged debanking practices, and the order seeks to hold them accountable [1]. The proposed measure also addresses banks’ involvement in providing information related to the January 6, 2021, Capitol riot investigations [1].

The executive order, if signed, would mark a significant regulatory shift for the crypto industry [1]. It reflects broader efforts by Trump and his allies to roll back policies they argue have made it difficult for digital asset firms to access traditional banking services [1]. Bo Hines, Executive Director of the White House's Presidential Working Group on Digital Assets, confirmed that administrative action was imminent, telling Decrypt in June that "the industry can expect something in short order" [1].

However, legal experts have raised concerns about the order’s enforceability [1]. Alex Chandra, partner at Indonesia-based law firm IGNOS Law Alliance, noted that executive orders can only enforce existing laws and cannot create new protections [1]. He warned that without clear definitions around "political discrimination," enforcement could become problematic [1]. Furthermore, since political affiliation is not a protected class under current federal anti-discrimination law, Chandra suggested that the order may lack a clear statutory basis and could be challenged in court [1].

Despite these legal uncertainties, banks have already begun adjusting their policies, with some revising internal guidelines to explicitly prohibit political discrimination and engaging with Republican state officials to demonstrate compliance [1]. Meanwhile, crypto firms such as Coinbase continue to pursue legal avenues to uncover documents related to "Operation Chokepoint 2.0," with its chief legal officer, Paul Grewal, accusing the FDIC of obstructing access to information [1].

If enacted, the order would represent one of the most direct federal interventions into banking practices affecting the crypto sector to date [1]. It could reshape the regulatory landscape for digital asset firms and conservative organizations, though its long-term effectiveness will depend on legal challenges and the willingness of banks to comply with its directives [1].

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[1] Source: [Decrypt - Trump to Issue Executive Order Shielding Crypto Firms From Debanking](https://decrypt.co/333524/trump-executive-order-crypto-firms-debanking)