Trump Orders Banks Penalized for Political or Crypto Debanking Bias

President Donald Trump is preparing to issue an executive directive targeting what the administration perceives as biased practices by banks toward cryptocurrency companies and politically conservative clients [1]. The directive aims to prevent financial institutions from terminating customer relationships based on ideological or political grounds and will empower federal agencies to investigate and penalize banks that engage in such behavior [2]. The initiative is expected to be signed in late July or mid-August, according to reports, and would require regulators to ensure compliance with equal credit provisions and to evaluate how federal infrastructure supports innovation in digital assets [3].

The order seeks to address the issue of “debanking,” a term used to describe the refusal of financial services to businesses or individuals deemed controversial. Under the directive, banks may face financial penalties if found to be in violation of these policies [4]. The Small Business Administration will also be tasked with reviewing lending practices, particularly those that may exclude crypto firms or politically active clients [5]. This move is part of a broader administration strategy to challenge what it views as an erosion of free speech and fair access in the financial sector [6].

The cryptocurrency industry has long expressed concerns over exclusion from traditional banking services. Major firms such as Coinbase, Kraken, and Uniswap Labs have raised these issues in congressional inquiries, noting that their access to financial services has been limited without clear justification. Eric Trump, the president’s son, has also spoken out on the matter, citing his own experience of unexpected account closures when launching a Bitcoin mining venture. He claims the decisions were politically motivated [7]. Meanwhile, banks argue that such rejections are based on legitimate concerns over money laundering and compliance risks [8].

According to Binance CEO Changpeng Zhao, the directive could serve as a turning point, as U.S. banks would no longer be able to restrict services to crypto businesses without facing potential consequences [9]. The order also reflects a growing call within the crypto community for clearer and more consistent regulations, rather than decisions influenced by political considerations [10].

As the administration moves forward with this directive, it is expected to influence the ongoing debate between regulators, banks, and the digital asset sector. The outcome may shape how financial institutions approach crypto businesses and conservative clients in the future, setting new standards for fairness and compliance in the banking industry [11].

Source: [1] https://www.wsj.com/finance/regulation/white-house-preps-order-to-punish-banks-that-discriminate-against-conservatives-8af18854

[2] https://www.ainvest.com/news/trump-executive-order-tackles-alleged-crypto-conservative-debanking-practices-2508/

[3] https://thecryptobasic.com/2025/08/05/trump-plans-executive-order-on-banks-discriminating-against-crypto-firms/

[4] https://in.investing.com/news/stock-market-news/trumps-white-house-reportedly-drafts-order-to-punish-banks-for-political-bias-crypto-firm-exclusions-4942989

[5] https://www.telegraph.co.uk/world-news/2025/08/05/donald-trump-punish-banks-dropping-customers/

[6] https://www.ainvest.com/news/trump-issue-executive-order-penalizing-banks-crypto-conservative-bias-2508/

[7] https://coincentral.com/trump-takes-aim-at-banks-that-dumped-crypto-companies/

[8] https://www.coinspeaker.com/binance-founder-changpeng-zhao-banks-can-no-longer-restrict-crypto/

[9] https://seekingalpha.com/news/4478119-trump-administration-draft-order-debanking

[10] https://coinmarketcap.com/community/articles/6891e8d8305a424e52fc5482/