President Donald Trump is reportedly preparing to sign an executive order that would direct U.S. banking regulators to investigate claims of political and crypto-related debanking, according to The Wall Street Journal. The move could mark a major shift in how regulators interact with digital asset firms and politically affiliated individuals. This comes at a time where complaints of discriminatory banking practices continue to pile up.
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Crypto Industry May Finally Get Its Investigation
The draft order, seen by WSJ, would instruct regulators like the FDIC and the Office of the Comptroller of the Currency to review whether banks broke antitrust, fair lending, or consumer protection laws when cutting ties with crypto firms.
Executives in the digital asset space have long accused regulators under President Biden of weaponizing the banking system against them. This alleged pressure campaign is what some in the industry now refer to as “Operation Choke Point 2.0.” According to Coinbase’s (COIN) Chief Legal Officer Paul Grewal, Biden-era regulators “bludgeoned the banks” into dropping crypto clients, particularly after the FTX collapse in 2022. A FOIA lawsuit supported by Coinbase revealed the FDIC had, in fact, sent letters asking banks to pause or reassess crypto activities. This lends weight to the idea that banking access was being quietly throttled.
If signed, Trump’s order could demand that any policy contributing to this kind of client offboarding be scrapped. It could also refer violations to the Department of Justice for legal follow-up, which may include fines or enforcement actions.
Political Debanking Allegations Also in the Crosshairs
The scope of the order reportedly goes beyond crypto. It also plans to look into claims that banks have shut down accounts belonging to conservatives because of their political views. While it doesn’t name any specific banks, the draft criticizes financial institutions that reportedly helped federal agencies investigate people involved in the January 6 Capitol riots.
Some conservative groups say their accounts were closed without warning or reason, which they argue amounts to political targeting. Banks often call this process “derisking.” It means cutting off clients who could pose legal or reputational problems. But critics say it’s being used as a loophole to block people based on beliefs instead of risk.
Back in June, the Federal Reserve said it would stop checking whether banks were closing accounts for reputation-related reasons. That followed similar moves from the FDIC and OCC. Trump’s order is expected to make this change official and dig into whether past account closures went too far.
According to WSJ, the order may be signed this week. However, as with most White House action, the plan could be delayed or revised.
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