President Donald Trump has signed a sweeping executive order targeting what he describes as discriminatory banking practices against conservatives, religious groups, and digital asset companies. The move, announced on August 7, 2025, has sent ripples through the financial sector and reignited a national debate over the intersection of politics, finance, and free enterprise.
The executive order, as reported by Crypto Briefing, prohibits financial institutions from denying accounts or services based on political or religious beliefs, or on the basis of lawful business activities. The directive comes after a series of high-profile incidents and mounting complaints from individuals and organizations who say they were denied banking services for ideological reasons. Trump’s order specifically targets a controversial banking standard known as “reputational risk,” which critics argue has been used as a pretext to cut off clients deemed politically or socially controversial.
“The banks discriminate against conservatives, they discriminate against religion, because they’re afraid of the radical left, I suspect,” Trump said, according to Crypto Briefing. “Nobody knows the banking industry better than me, and I’m not going to let them take advantage of you any longer.”
Under the new order, federal banking regulators—including the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC), and the Federal Reserve—have 180 days to remove all references to reputational risk from their guidance, manuals, and policies. This language, while originally intended to help banks manage potential public relations issues, has been criticized for its vagueness and for enabling what some see as politically motivated account closures. The order also instructs regulators to eliminate similar concepts that could allow for subjective, ideological decision-making in banking supervision.
The White House emphasized that the digital asset industry, including cryptocurrency firms, has been a repeated target of debanking. According to AInvest, the order mandates a comprehensive review of discriminatory banking practices affecting crypto companies and requires federal agencies to refer cases of unjust account closures to the Department of Justice for potential civil action. The Small Business Administration (SBA) is also tasked with identifying and reinstating clients previously denied services due to what the administration calls unlawful debanking.
This executive action follows a series of reported incidents, including a major bank’s denial of ticket-payment processing for a Republican event and federal regulators allegedly encouraging banks to flag transactions involving companies like Bass Pro Shop, Cabela’s, or payments using terms such as “Trump” or “MAGA”—all without evidence of criminal activity. The Senate Banking Committee earlier this year heard testimonies from individuals and crypto industry representatives who experienced similar account closures, highlighting the breadth of the problem.
Banking industry representatives, as noted by AInvest, have pushed back on the allegations, maintaining that banks do not reject customers based on their beliefs. They acknowledge, however, that inconsistent regulatory guidance has created confusion. The order’s supporters, including House Financial Services Committee Chair French Hill and Senator Cynthia Lummis, say that denying financial services on the basis of political beliefs undermines foundational American freedoms. Lummis also suggested the order could pave the way for more Americans to include digital assets in their retirement plans.
On the other hand, critics within the banking sector argue that the new directive could complicate risk assessment procedures, making it more difficult for banks to reject accounts for legitimate reasons such as money-laundering concerns or solvency. They warn that the added scrutiny may inadvertently pressure banks to accept clients they would otherwise consider too risky, simply to avoid the appearance of ideological bias.
Trump’s order is not without personal context. Earlier this year, he told CNBC’s Andrew Ross Sorkin that JPMorgan Chase and Bank of America had refused to accept his deposits. “They totally discriminate against, I think, me maybe even more, but they discriminate against many conservatives,” Trump said. “I think the word might be ‘Trump supporters’ more than conservatives.” JPMorgan denied closing accounts for political reasons, while Bank of America did not address the claim directly, according to Reuters.
The Trump Organization and Eric Trump even sued Capital One for closing accounts in the wake of the January 6, 2021, Capitol riot—a case that remains in litigation. The administration’s order directs agencies to “make reasonable efforts” to reinstate customers who have been debanked for political or religious reasons, and the Treasury Department is tasked with developing new regulations to prevent such practices in the future. The Attorney General will oversee investigations and, if necessary, initiate civil actions against banks found to have engaged in discriminatory debanking.
The executive order’s implications extend beyond partisan politics. As AInvest notes, the directive also orders the Department of Labor to reassess how cryptocurrency and other digital assets are treated in 401(k) retirement plans, hinting at broader integration of digital assets into the traditional financial system. With a six-month deadline for compliance, financial institutions are now under pressure to reevaluate internal policies and ensure their decisions are based solely on objective, risk-based criteria rather than subjective or ideological considerations.
Senate Banking Committee Chair Tim Scott, a South Carolina Republican, echoed Trump’s concerns, telling Fox Business that the banking industry had targeted conservatives and religious groups. The order has been welcomed by many Republican lawmakers and digital asset advocates, including prominent venture capitalist Marc Andreessen, who made debanking a rallying cry among tech founders during the 2024 campaign season.
Trump’s executive order fits into a broader campaign against what he sees as overreach by federal regulators. Over the past year, he has targeted elite universities for alleged discrimination, clashed with major law firms, and challenged corporate giants like Amazon and Walmart over pricing and trade policies. The debanking order, however, is one of the most direct interventions yet into the workings of the financial system—and one with potentially far-reaching consequences for both banks and their customers.
Ultimately, the success of the initiative will depend on the clarity of the new rules and how consistently they are enforced. The next six months will be a crucial test for both regulators and the industry as they navigate the evolving landscape of financial access and political neutrality.
As the dust settles, Americans on all sides of the issue will be watching closely to see whether the new order delivers on its promise of fair access to financial services—or simply adds a new layer of complexity to an already fraught debate.
