Trump Signs Executive Order to Curb ‘Unfair Debanking’ in Crypto

President Donald Trump has taken a decisive step to address alleged discriminatory banking practices against the crypto industry. A new executive order prohibits financial institutions from denying services based on political or religious beliefs—a practice known as 'debanking.' The White House specifically cited the digital assets sector as a victim of these unfair practices, which it claims undermine public trust and impose financial burdens on law-abiding citizens.

The order eliminates 'reputational risk' as justification for heightened regulatory scrutiny. Critics argue this vague term has been weaponized against crypto businesses. While the Federal Reserve defines reputational risk as potential damage from negative publicity, the administration contends it's been misapplied to stifle innovation in blockchain technologies.