White House Order Aims to Curb Banks Over Customer Closures Based on Beliefs

The White House is preparing an executive order that would penalize banks for terminating customer relationships based on ideological or political beliefs, according to a report [1]. The order aims to combat the practice of “debanking,” where financial institutions discontinue services for reasons tied to a customer’s beliefs, rather than financial or legal compliance concerns. It is expected to be signed by President Donald Trump and directs banking regulators to investigate whether the closure of accounts violated the Equal Credit Opportunity Act or other consumer protection laws [1].

This initiative aligns with a broader administration effort to promote stability in the crypto and fintech sectors, which have faced significant challenges under the previous administration [1]. During the Biden administration, there were reports of a coordinated government effort—known as Operation Chokepoint 2.0—to cut off financial services for crypto firms. The new order signals a shift in regulatory approach, emphasizing transparency and fairness in banking decisions [1].

The draft order does not name specific banks but references a reported incident involving Bank of America and a Christian nonprofit in Uganda. The bank claimed it closed the accounts because it does not serve small businesses operating abroad [1]. However, the order’s focus is on whether such decisions were based on impermissible factors, such as political or ideological beliefs.

Banks have historically justified account closures based on anti-money laundering concerns and regulatory compliance pressures, particularly in the crypto space. The order would require regulators to refer any findings of violations to the attorney general. This aligns with actions already taken by the Justice Department, which launched a task force in April to investigate claims of biased banking practices [1].

In response to potential regulatory pressure, banks are updating their policies and engaging with Republican attorneys general to avoid further conflict. Despite these efforts, the crypto and fintech sectors may still face challenges in accessing affordable financial services. A venture capital firm, Andreessen Horowitz (a16z), has warned that banks are increasingly charging high fees for access to account data or money transfers, which could affect platforms like Coinbase and Robinhood and limit competition [1].

The executive order reflects an administration commitment to addressing perceived inequities in banking practices, particularly in the digital finance space. While the final version of the order could still be revised, its intent is clear: to ensure that financial services are not withheld based on non-financial, ideological criteria [1].

Sources:

[1] title: New White House Order Could Punish Banks for Dropping Customers Over Beliefs

url: https://www.coindesk.com/policy/2025/08/05/new-white-house-order-could-punish-banks-for-dropping-customers-over-beliefs