Trump Administration Prepares Executive Order to Penalize Banks for Debanking Over Beliefs

The White House is finalizing an executive order that would penalize financial institutions for cutting off customers based on ideological grounds. Expected to be signed by President Donald TRUMP this week, the directive mandates banking regulators to investigate potential violations of the Equal Credit Opportunity Act when accounts are closed.

While not explicitly mentioning cryptocurrencies, the order could indirectly benefit the crypto sector by curbing Operation Chokepoint 2.0—a perceived Biden-era campaign to deny banking services to digital asset firms. The draft references Bank of America's closure of a Christian nonprofit's accounts in Uganda, though banks cite anti-money laundering compliance as their primary concern.

Regulators will be required to refer violations to the Attorney General, with the Justice Department already taking preliminary steps since April. This aligns with the administration's broader push against ideological debanking, potentially reducing regulatory pressure on crypto businesses.