Trump Executive Order Targets ’Politicized Debanking’ by Financial Institutions

President TRUMP escalated scrutiny of major banks with an executive order demanding federal regulators investigate potential politically or religiously motivated denial of financial services. The directive requires reviews of supervisory data for unlawful debanking cases, with referrals to the Justice Department for violations. Institutions found culpable face fines or consent decrees.

The order further mandates the removal of 'reputational risk' assessments from bank oversight frameworks. Two key regulators—the Federal Reserve and OCC—have already eliminated this metric, while the FDIC prepares to follow. The SBA will enforce reinstatement protocols for wrongfully denied customers.

This regulatory shift comes amid growing concerns about financial censorship, though implementation details remain undefined. The move could indirectly impact cryptocurrency markets by altering traditional banking sector behavior, though no direct crypto references appear in the order.