Trump Signs Order to Ban Alleged ‘Debanking’ of Political, Religious Groups

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Key Takeaways

  • An executive order signed today by President Donald Trump would end the “reputational risk” standards that he said were used to discriminate against political and religious ideology. This could result in investigations of banks accused of “debanking” clients based on those beliefs.
  • Trump accused major financial institutions of “debanking” him because of his conservative political beliefs. 
  • The order would also target financial institutions that deny services to lawful businesses, with a focus on cryptocurrency firms that also claimed discrimination from banks.

President Donald Trump signed an executive order intended to punish banks and financial institutions that deny service based on political or religious ideology or deny services to lawful businesses.

The order would ban the vague banking standard of “reputational risk,” which critics said has been used by financial institutions to deny accounts to some individuals and groups. The order also directs regulators to investigate claims of banking discrimination and to provide for reinstatement of these clients, according to a White House fact sheet released on the executive order. 

In an interview with CNBC, Trump said he was a victim of debanking after a major national bank closed his account following the conclusion of his first term as president, while another refused to start new accounts for him.

“The banks discriminated against me very badly,” Trump said.

Senate Banking Committee Chair Tim Scott, a South Carolina Republican, said in a Fox Business interview that he agreed that the banking industry had targeted conservatives and religious groups.

The order could also provide benefits to cryptocurrency firms, as the executive order also cited action taken by banks to deny services to the “digital assets industry.”

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