Trump Orders Banks Penalized for Discriminating Against Crypto and Conservative Clients

President Donald Trump is set to issue an executive order that will penalize U.S. banks for discriminating against cryptocurrency firms and conservative entities, marking a significant shift in federal banking policy. The directive, which has drawn both support and skepticism from industry stakeholders, aims to address what Trump has described as politically motivated "de-banking" practices by major financial institutions. This move is seen as a direct response to Trump’s long-standing criticism of banks like JPMorgan Chase and Bank of America, which he claims have unfairly cut off services to conservative clients and crypto-related businesses [2].

The order will be enforced by the Department of Justice and overseen by the Federal Reserve, the Office of the Comptroller of the Currency (OCC), and the Federal Deposit Insurance Corporation (FDIC). Financial institutions found to have violated antitrust laws, the Equal Credit Opportunity Act, or consumer financial protection regulations could face significant penalties. Critics argue that banks often cite regulatory compliance as a reason for limiting services to crypto firms, but Trump’s administration is pushing for stricter accountability in these cases [5].

Industry insiders suggest that this directive could reshape how banks approach their risk management strategies and client engagement, especially with politically sensitive industries. By improving access to banking services for crypto firms, the administration hopes to enhance liquidity in the sector and encourage greater participation in U.S. markets [7]. This echoes broader concerns about the crypto industry’s ability to secure reliable financial infrastructure, a challenge that has persisted for years due to regulatory uncertainty and institutional hesitancy.

The move is also drawing comparisons to past regulatory efforts such as “Operation Chokepoint 2.0,” a controversial initiative under the Obama administration that critics say unfairly targeted conservative and crypto businesses. Advocates of Trump’s order argue that it reverses such restrictive measures and sets a precedent for fair treatment in financial services [1].

While the executive order has not yet been finalized, it signals a growing emphasis on enforcing non-discrimination in banking and addressing perceived political bias. The implications for the crypto sector could be substantial, with potential changes in how banks interact with digital asset companies and how they assess risk in politically charged environments. The ultimate impact of the order will depend on its enforcement and the willingness of financial institutions to adjust their practices accordingly [6].

[1] The Washington Post (https://www.washingtonpost.com/business/2025/08/05/trump-de-banking-conservatives/)

[2] Yahoo Finance (https://finance.yahoo.com/news/trump-says-major-us-banks-discriminated-against-me-as-white-house-preps-debanking-executive-order-150942081.html)

[5] The Wall Street Journal (https://www.wsj.com/finance/regulation/trump-says-banks-discriminate-against-conservativesand-that-he-was-a-victim-c5e16bac?gaa_at=eafs&gaa_n=ASWzDAhXtp-ZiDtcKWPINA87Zc9CrwvR7J3gq8OjvgJAlwUVxc1bdHo5eyNe&gaa_sig=0JWsicAO7grRq8aD0jzzSTjoTCM9T4Vxcv3FlDhfu0J5xNRIAx-GhZUCph7Qz8bkzQpnkpg8y6HypXBRbHZphg%3D%3D&gaa_ts=6892ab6f)

[6] The Independent (https://www.the-independent.com/news/world/americas/us-politics/trump-banks-crypto-conservatives-fine-b2802113.html)

[7] Ledger Insights (https://www.ledgerinsights.com/trump-order-to-target-bank-discrimination-crypto-de-banking-report/)