Trump to Sign Order Penalizing Banks for Politically Motivated Debanking

The Trump administration is preparing to issue an executive order targeting the controversial practice of “debanking,” which has seen banks terminate accounts of cryptocurrency firms and conservative groups. The order, expected to be signed by President Donald Trump within days, aims to penalize institutions that deny services based on ideological or business affiliations. It marks a notable shift from previous regulatory approaches that, in some cases, limited access to banking services for digital asset companies [1][2].

Under the proposed directive, federal regulators will be tasked with investigating whether banks have violated antitrust laws, fair lending standards, and consumer protection regulations—particularly the Equal Credit Opportunity Act (ECOA)—by selectively cutting ties with crypto firms. If violations are found, affected institutions could face legal actions and financial penalties. This move is viewed as a direct response to growing concerns among crypto entrepreneurs who have struggled to secure banking services due to their association with the digital asset industry [4][5].

Industry figures, including Binance CEO Changpeng Zhao, have expressed support for the initiative, suggesting it could open new opportunities for crypto businesses both domestically and globally. Zhao noted that U.S. correspondent banks have historically restricted transactions involving crypto, and this proposed order could help normalize banking access for the sector. The White House has framed the executive action as a defense of economic freedom and a step toward reducing financial discrimination, emphasizing a broader regulatory shift in the administration’s approach to digital assets [6][7].

The directive also draws comparisons to past policies, such as Operation Chokepoint 2.0, which saw banks pressured to cut ties with crypto firms under the previous administration. This new order aims to reverse such measures, potentially benefiting tokens tied to U.S. DeFi protocols. Analysts suggest that the move could reshape the financial landscape for crypto firms, deterring banks from making politically motivated decisions and encouraging greater financial inclusion [8][9].

Sources indicate that the executive action could trigger legal scrutiny of banks for politically motivated account closures, reinforcing the administration’s stance against perceived ideological bias in financial services. The impact on the crypto industry may include increased banking access, reduced operational risks, and a more level playing field for digital asset firms 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)

[3] Source: [Financemagnates](https://www.financemagnates.com/trending/bitcoin-analyst-signals-reversal-ahead-trump-executive-order-to-probe-crypto-debanking/)

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

[5] Source: [Seeking Alpha](https://seekingalpha.com/news/4478119-trump-administration-draft-order-debanking)

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

[7] Source: [Crypto Economy](https://crypto-economy.com/trump-to-sign-order-protecting-crypto-from-political-debanking-heres-what-it-means/)

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

[9] Source: [TradingView](https://www.tradingview.com/news/financemagnates:9622fc443094b:0-bitcoin-analyst-signals-reversal-ahead-trump-executive-order-to-probe-crypto-debanking/)