Trump Orders Banks Penalized for Cutting Crypto and Conservative Clients

U.S. President Donald Trump is preparing to sign an executive order aimed at penalizing banks for cutting off financial services to cryptocurrency firms and conservative groups, a practice known as “debanking.” The directive, first reported by The Wall Street Journal, seeks to investigate whether financial institutions have violated antitrust, consumer protection, and fair credit laws by selectively ending business relationships for political reasons [1][2]. If confirmed, the order will represent a significant regulatory shift in how crypto companies and conservative clients are treated within the U.S. banking system.

The executive order reportedly instructs regulators such as the Federal Reserve, the Office of the Comptroller of the Currency, and the FDIC to scrutinize bank practices for potential violations of the Equal Credit Opportunity Act (ECOA). Banks found to have discriminated against crypto firms could face financial penalties, consent decrees, or other disciplinary measures [1][2]. The administration is also directing regulators to eliminate internal policies that may have contributed to the debanking issue and to refer potential violations to the attorney general for further action.

This move has been framed as a direct response to complaints from prominent figures in the crypto space, including Coinbase’s legal counsel and Trump’s son, Eric Trump, who have alleged that banks have severed ties with crypto businesses under pressure from regulators during the Biden-Harris administration [1]. The administration is also encouraging the Small Business Administration to review its loan partner practices to ensure alignment with the new directive.

Industry observers and crypto entrepreneurs have expressed support for the initiative. Binance’s CEO, Changpeng Zhao, stated that U.S. correspondent banks have historically restricted crypto-related transactions, and the executive order could help reduce these barriers [6]. The White House has emphasized that the order promotes economic freedom and combats financial discrimination, signaling a broader policy shift in favor of digital asset firms and conservative clients.

The new directive contrasts sharply with earlier efforts like “Operation Chokepoint 2.0,” which reportedly pressured banks to avoid working with crypto companies by raising regulatory concerns. Analysts suggest that the Trump administration’s action could deter politically motivated account closures and encourage greater financial inclusion for crypto firms, including those involved in U.S.-based DeFi protocols [8].

The order is expected to trigger legal reviews of bank account management practices and reinforce the administration’s stance against ideological bias in financial services. Potential benefits include increased banking access, reduced operational risks, and a more level playing field for crypto companies in the U.S. market [1].

[1] Source: [The Wall Street Journal](https://www.wsj.com/finance/regulation/white-house-preps-order-to-punish-banks-that-discriminate-against-conservatives-8af18854?gaa_at=eafs&gaa_n=ASWzDAgDmO5lagr84H5IDipimdffURhv8IqZz_zclMIAFEcnm7rfDVdo0X1O&gaa_sig=Fjn_7mTWVt5AXfTF_FjVuFhYI1cvV4GgFnyDFTei79lh3FEWz9kNYBqJMx8Z9sEHx_BDMNu6UKcVnH-3SP-Pig%3D%3D&gaa_ts=68925d58)

[2] Source: [Yahoo Finance](https://finance.yahoo.com/news/trump-issue-executive-order-shielding-055149278.html)

[4] Source: [AInvest](https://www.ainvest.com/news/trump-sign-order-addressing-bank-discrimination-crypto-firms-conservatives-2508/)

[6] Source: [CoinDesk](https://www.coindesk.com/policy/2025/08/05/new-white-house-order-could-punish-banks-for-dropping-customers-over-beliefs)

[8] Source: [Crypto Briefing](https://cryptobriefing.com/crypto-banking-discrimination-white-house/)