U.S. President Donald Trump attacks American banks through cryptocurrency, specifically Bitcoin
In a significant move aimed at ensuring fair banking for all Americans, President Trump has issued an Executive Order titled "Guaranteeing Fair Banking for All Americans" on August 7, 2025. The Order seeks to address and end the practice of "politicized or unlawful debanking" within the financial sector.
The Order directs federal financial regulators, including the Federal Reserve, the OCC, FDIC, CFPB, NCUA, and SBA, to take action against financial institutions that deny or restrict access to banking services based on political views, religious beliefs, or lawful business activities, rather than objective risk-based decisions.
This executive order represents a renewed federal commitment under the Trump administration to combat debanking practices perceived as politically or religiously motivated. It builds on ongoing federal and state anti-debanking efforts and requires federal agencies to review past debanking practices within 120 days, with an emphasis on immediate investigation and remediation of debanking offenses.
The potential impact of this Order is far-reaching. Financial institutions will face increased federal scrutiny to ensure they do not discriminate against customers for protected beliefs or affiliations, mandating more transparent, individualized, and risk-based banking decisions. The crypto industry, which has often reported challenges obtaining banking services due to regulatory and reputational concerns, may benefit from these protections. The Order could mitigate some banks' political or ideological biases against crypto businesses, potentially improving crypto firms' banking access and operational stability.
Moreover, the Order reinforces and expands on state legislation in several states, such as Tennessee and Florida, that restrict denial of banking services on similar grounds, indicating a coordinated multi-level regulatory push toward fair access.
Notably, the Small Business Administration will also review its practices in lending under the new order. The implementation of Trump's campaign promise to end "Operation Choke Point 2.0" and create a crypto-friendly environment is now within reach, which would remove a major hurdle for the crypto industry.
Violations of the Order could result in penalties such as fines, cease and desist orders, or other disciplinary measures. Regulatory agencies will investigate whether financial institutions have violated laws on equal credit opportunity, antitrust laws, or consumer protection laws. In extreme cases, violations could be directly referred to the Attorney General.
The Order does not specify Bitcoin (ISIN: CRYPT0000BTC) as a target, but the crypto industry has been suffering from "debanking" for years. The practice of cutting off entire industries from financial services because they are deemed politically or regulatory sensitive is directly targeted by the Order.
In the world of cryptocurrencies, Eric Trump, the son of the US President, has entered the space due to banks blocking his family because of his father's political involvement. For individuals who don't want to create a wallet, the "Bitcoin Direct ETP" or "Ethereum Direct ETP" from NxtAssets allows for investing in Bitcoin or Ethereum as simply as buying a stock.
The Order is set to be signed as early as this week, according to sources from the Wall Street Journal. It marks a significant step forward in ensuring fair banking practices for all Americans, regardless of political views, religious beliefs, or lawful business activities.
- The Executive Order, titled "Guaranteeing Fair Banking for All Americans," issued by President Trump on August 7, 2025, targets the financial sector's practice of denying or restricting access to banking services based on political views, religious beliefs, or lawful business activities, focusing on the technology industry, such as the crypto sector.
- The order mandates federal financial regulators, including the Federal Reserve, OCC, FDIC, CFPB, NCUA, SBA, to investigate and remediate debanking offenses, which could potentially improve the operational stability and banking access for crypto firms and mitigate banks' political or ideological biases against them.
- Alongside state legislation in states like Tennessee and Florida, the order represents a coordinated multi-level regulatory push toward fair access, with potential penalties for violations including fines, cease and desist orders, and were extreme cases, referral to the Attorney General.
