Trump to Sign Executive Order Penalizing Banks for Politically Motivated Crypto Debanking

President Donald Trump is reportedly set to sign an executive order targeting banks that refuse to serve cryptocurrency companies, marking a significant shift in federal regulatory approach toward the digital asset sector. The move, described internally as the “Choke Point Killer,” aims to address what the administration views as politically motivated discrimination by traditional financial institutions. The order would empower regulators to investigate and impose penalties on banks found to be excluding clients based on political affiliations or industry sectors [1].

The directive, if enacted, would enforce consequences on financial institutions that block or restrict services to legal crypto firms, including exchanges, wallet providers, and mining operations—businesses that have long struggled with access to conventional banking services. This action is seen as a direct response to growing industry frustration over what is known as “debanking,” a practice where banks terminate or refuse to open accounts for crypto-related businesses despite their legal compliance [2].

Supporters argue that the order signals strong federal support for the crypto industry and could reshape how traditional banks engage with blockchain companies. It may also force financial institutions to adopt more neutral and open policies, potentially improving banking access for thousands of crypto startups. The pro-crypto stance aligns with broader administration efforts, including recent actions by the CFTC in the crypto trading space [3].

Industry figures, including Binance CEO Changpeng Zhao, have acknowledged the potential impact of the order, noting that it could increase pressure on major banks to treat all clients impartially. However, critics caution that addressing debanking issues should be handled through comprehensive legislation rather than executive action. They warn that such measures could lead to regulatory overreach and unintended disruptions in the financial ecosystem [4].

The administration has made it clear that banks engaging in politically motivated exclusionary practices will face consequences, including financial sanctions. While the final version of the directive remains under development, the messaging has already signaled a strong intent to enforce ideological neutrality in banking services. This executive action underscores Trump’s broader commitment to supporting free enterprise and aligning financial policy with conservative values [5].

Sources:

[1] Stocktwits (https://stocktwits.com/news-articles/markets/equity/trump-s-white-house-reportedly-drafts-order-to-punish-banks-for-political-bias/chrLO3GRdc4)

[2] CryptoRank (https://cryptorank.io/news/feed/27a8b-operation-choke-point-killer-white-house-preps-new-crypto-order)

[3] Binance (https://www.binance.com/en/square/post/27897430139961)

[4] Hacker (https://news.ycombinator.com/item?id=44793168)

[5] Morningstar (https://www.morningstar.com/news/dow-jones/202508051713/dow-jones-top-markets-headlines-at-3-am-et-dow-bounces-back-from-last-weeks-slump-trumps)