Key Highlights:
- US banks can no longer deny services based on a customer’s political views, religious beliefs, or industry
- This will end Biden-era pressure on banks to drop “controversial” clients, including crypto firms
- Treasury and FDIC will audit previous account closures
Amid a great regulatory shift in the US, President Donald Trump has signed an executive order today, which will prohibit U.S. banks from denying services based on political or ideological grounds.
The order, which is expected to take immediate effect, represents the most aggressive pushback yet against what conservative groups and cryptocurrency advocates have called “financial censorship.”
The executive order states: “Today, President Donald J. Trump signed an Executive Order to ensure that Federal regulators do not promote policies and practices that allow financial institutions to deny or restrict services based on political beliefs, religious beliefs, or lawful business activities, ensuring fair access to banking for all Americans.”
The Death of “Operation Chokepoint 2.0”
The new executive order specifically targets what Trump allies have called “Operation Chokepoint 2.0.”It is an alleged Biden-era initiative where regulators quietly encouraged banks to drop clients deemed politically risky, including crypto firms, firearms dealers, and conservative organizations.
“While crypto isn’t named, this is a clear warning sign to regulators who’ve quietly pressured banks to cut ties with lawful but disfavored industries like gun manufacturers and digital assets,” Eleanor Terrett said in a post on X.
According to the reports, here are some key provisions in Trump’s executive order related to debanking:
- Eliminating “Reputational Risk” Justifications – Federal banking regulators must remove this vague standard from guidance, preventing banks from dropping clients over subjective concerns.
- Retroactive Investigations – The Treasury and FDIC will audit past account closures to determine if banks violated anti-discrimination laws.
- Stiff Penalties for Violators – Institutions found guilty of politically motivated debanking face fines and possible loss of federal charters.
President Trump has stated that the banks “discriminate against many conservatives,” including himself.
President Trump stated that: “The banks discriminate against conservatives, they discriminate against religion, because they’re afraid of the radical left, I suspect. I think the bank regulators are doing a big number of the banks because they’re not allowed to do business with you. And we’re going to get those banks when we get in office.
“We’re going to get them. Nobody knows the banking industry better than me, and I’m not going to let them take advantage of you any longer. They’ve taken advantage and what they do to the people in this room, and by the way, millions and millions of others, is a disgrace. We’re going to end it,” he added further.
Why Banks Resisted Crypto and Why Trump is Changing Course
The crypto industry has faced an uphill battle for banking access since Bitcoin’s early days. Major collapses, like FTX in 2022 and the 2023 implosion of crypto-friendly banks Silvergate, Signature, and Silicon Valley Bank, fueled this skepticism among regulators and lenders.
However, the Presidential election 2024 brought a huge revolution in the political views on the digital asset market. 2025 has marked a dramatic shift, which includes
- In a regulatory thaw, the OCC’s Interpretive Letter 1183 (March 2025) explicitly allows national banks to custody and trade crypto assets.
- JPMorgan, once a vocal Bitcoin skeptic, now lets customers buy crypto with credit card points. Bank of America is piloting a stablecoin.
- Furthermore, Spot Bitcoin ETFs, approved in 2024, have funneled billions into crypto, with Bitcoin topping $111,000 this year.
“Banks finally see crypto as inevitable,” said Coinbase CEO Brian Armstrong. “This order ensures they can’t pick winners based on politics.”
The Human Cost of Debanking
Beyond crypto, the order addresses a growing crisis for ordinary Americans. Undocumented immigrants, cash-based businesses, and even mainstream conservatives have increasingly found themselves “unbanked,” forced into predatory payday loans with 300%+ APRs.
Prominent cases include Gab.com, which is a free-speech social network that lost banking access in 2021 over its refusal to moderate content. Hundreds reported sudden account closures despite spotless compliance records. Furthermore, Multiple U.S. operations were cut off in 2024 under ESG pressure campaigns.
“Banks became ideological gatekeepers,” said Rep. Tom Emmer (R-MN). “Today restores due process.”