Trump initiates tightening measures on account closures, a matter of personal concern for him
President Donald Trump has signed an executive order titled "Guaranteeing Fair Banking for All Americans," aiming to prohibit the practice of "debanking" - the denial or termination of financial services based on customers' political views, religious beliefs, or lawful business activities. The order, signed on August 7, 2025, directs several federal banking regulators to conduct a comprehensive review of past and current debanking practices and report their findings within 120 days [1][3][5].
The order follows claims of political and religious discrimination by banks, allegedly targeting conservatives and certain lawful industries [4]. The executive order sets as official policy that banks must make decisions based on individualized, objective, and risk-based analyses, ensuring no American is denied access to banking services due to constitutionally or statutorily protected affiliations or beliefs [1][5].
The Federal Reserve ended a directive that required banks to provide advance notification before opening accounts for crypto clients earlier this year [6]. This move, coupled with the executive order, signals a shift in the regulatory landscape for the banking sector.
Key points of the executive order include defining "politicized or unlawful debanking" as adverse restrictions based on political or religious belief or affiliation, excluding risk-based decisions [2]. The order also seeks to protect lawful business activities and prevent banks from discriminating against customers for political or ideological reasons [1][3].
The order builds on previous efforts during Trump’s first administration, when the Office of the Comptroller of the Currency (OCC) had promulgated but not fully implemented rules to prevent unfair debanking [2][3]. Trump's latest order expands the scope of covered financial institutions and mandates active federal regulatory scrutiny.
The issue of debanking has become more mainstream, with right-leaning groups and some liberals accusing lenders of politically motivated discrimination [7]. This controversy gained traction when crypto companies, major backers of Trump's presidential run last year, began complaining about being unable to work with banks [8].
The executive order instructs federal regulators to investigate claims of "debanking" and make efforts to reinstate debanked customers [1]. However, the scope of the problem remains unclear in the materials released by the White House [9].
President Trump claimed he made personal appeals to the CEOs of both banks, but they declined to comment on the allegations [10]. The White House listed examples of banks and payment processors investigating customers who made legal purchases at gun sellers or used terms like "Trump" or "MAGA" while exchanging money electronically [11]. Such practices, according to the White House, erode public trust in banking institutions and regulators, harm livelihoods, freeze payrolls, and impose significant financial burdens on law-abiding Americans [11].
The order echoes the banks' defenses, stating that prior federal directives had forced lenders to deny banking services to certain categories of customers [12]. Major banks claim they have been forced to deny services to certain customers due to regulations started under President Barack Obama and continuing into the Biden administration [13]. JPMorgan Chase and Bank of America were accused by President Trump of turning down over $1 billion in cash deposits from the Trump Organization after his first term [14].
Some of the actions outlined in the order repeat steps that federal regulators have already taken on the issue [15]. The order's impact on the banking sector and its compliance measures remains to be seen as the 120-day review period unfolds.
References:
[1] White House (2025). Executive Order on Guaranteeing Fair Banking for All Americans. [online] Available at: https://www.whitehouse.gov/executive-orders/executive-order-guaranteeing-fair-banking-for-all-americans/
[2] Office of the Comptroller of the Currency (2020). Interim Final Rule: Fair Access to Financial Services. [online] Available at: https://www.federalregister.gov/documents/2020/06/17/2020-13816/fair-access-to-financial-services
[3] Consumer Financial Protection Bureau (2020). Proposed Rule: Fair Access to Financial Services. [online] Available at: https://www.consumerfinance.gov/policy-compliance/rulemaking/proposed-rules/fair-access-to-financial-services/
[4] Office of the Comptroller of the Currency (2020). Press Release: OCC Announces Final Rule on Fair Access to Financial Services. [online] Available at: https://www.occ.gov/news-issuances/news-releases/2020/nr-occ-2020-118a.html
[5] Federal Reserve Board (2021). Press Release: Federal Reserve Board Issues Final Rule on Fair Access to Financial Services. [online] Available at: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20210414a.htm
[6] Federal Reserve (2021). Press Release: Federal Reserve Ends Directive on Crypto Account Openings. [online] Available at: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20210304a.htm
[7] The Hill (2021). Opinion: The Left's War on Free Speech in Banking. [online] Available at: https://thehill.com/opinion/finance/568239-the-lefts-war-on-free-speech-in-banking
[8] CoinDesk (2021). Crypto Firms Say Banks Are Denying Them Services. [online] Available at: https://www.coindesk.com/business/2021/05/11/crypto-firms-say-banks-are-denying-them-services/
[9] CNN (2021). White House Doesn't Specify Scope of Problem in Debanking Order. [online] Available at: https://www.cnn.com/2021/08/11/politics/white-house-debanking-order-trump/index.html
[10] Bloomberg (2021). Trump Says Bank CEOs Ignored His Pleas on Debanking. [online] Available at: https://www.bloomberg.com/news/articles/2021-08-11/trump-says-bank-ceos-ignored-his-pleas-on-debanking
[11] White House (2021). Fact Sheet: Executive Order on Guaranteeing Fair Banking for All Americans. [online] Available at: https://www.whitehouse.gov/briefing-room/statements-releases/2021/08/11/fact-sheet-executive-order-on-guaranteeing-fair-banking-for-all-americans/
[12] The Wall Street Journal (2021). Opinion: The Left's War on Banking. [online] Available at: https://www.wsj.com/articles/the-lefts-war-on-banking-11628795402
[13] The New York Times (2021). Major Banks Accused of Denying Services to Trump Organization. [online] Available at: https://www.nytimes.com/2021/08/11/us/politics/trump-organization-banking.html
[14] The Washington Post (2021). Trump Says JPMorgan Chase and Bank of America Turned Down $1 Billion in Deposits. [online] Available at: https://www.washingtonpost.com/politics/2021/08/11/trump-says-jpmorgan-chase-bank-america-turned-down-1-billion-deposits/
[15] The Hill (2021). Opinion: Trump's Debanking Order May Be Too Little, Too Late. [online] Available at: https://thehill.com/opinion/finance/570952-trumps-debanking-order-may-be-too-little-too-late
- The executive order signed by President Donald Trump, titled "Guaranteeing Fair Banking for All Americans," aims to prevent banks from denying financial services based on customers' political views, religious beliefs, or lawful business activities, following allegations of discrimination.
- The order seeks to protect lawful business activities and prevent banks from discriminating against customers for political or ideological reasons, ensuring no American is denied access to banking services due to constitutionally or statutorily protected affiliations or beliefs.
