US President Donald Trump is considering an executive order to stop banks from cutting off financial services to certain industries, including cryptocurrency companies. This move aims to protect sectors that have faced “debanking”, when banks refuse to serve businesses for political or other non-economic reasons. According to The Wall Street Journal, Trump’s Domestic Policy Council, led by Vince Haley, is drafting the order.
Several large banks like JPMorgan Chase, Wells Fargo, and Citibank have been in talks with officials in Texas and Oklahoma. They are responding to accusations of refusing to provide banking services to industries such as gun manufacturing and fossil fuels. Crypto firms have also been caught in this wave of banking restrictions.
Recently, the Federal Reserve softened its stance on crypto banking. Chair Jerome Powell told Congress that banks are allowed to offer services to cryptocurrency companies, as long as they follow existing rules. Powell said, “Banks get to decide who their customers are and that’s not our decision.” This statement marks a shift from the Fed’s earlier strict approach.
Alongside the Fed, other agencies like the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation have removed rules that made banks cautious about serving crypto firms.
These changes come after several crypto-friendly banks collapsed in early 2023, including Silicon Valley Bank and Silvergate Bank, which some industry experts have called part of a “coordinated effort” to unbank the crypto sector.
The executive order is seen as a way to end this so-called “Operation Chokepoint 2.0.” Critics say many tech and crypto entrepreneurs have been unfairly denied banking services under the current system.
Meanwhile, back in February at a Senate Banking Committee hearing, Senator Elizabeth Warren also criticized banks for cutting off customers for political reasons, saying, “People shouldn’t be arbitrarily denied access to their banks, locked out of their accounts or stripped of their banking privileges.”
Despite the new regulatory moves, some experts warn that debanking concerns may last until at least 2026. Caitlin Long, CEO of Custodian Bank, said, “Trump won’t have the ability to appoint a new Fed governor until January. Therefore, you can see the breadcrumbs leading up to a potentially big fight.”
Banks like Bank of America and JPMorgan are now exploring crypto products, signaling growing interest in digital currencies despite the challenges.
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