US President Donald Trump is reportedly preparing to sign an executive order directing banking regulators to investigate alleged “debanking” of cryptocurrency firms and political conservatives, according to a report by The Wall Street Journal.
If signed, the order could mark a major shift in how US banks handle clients in the crypto industry and politically sensitive sectors, potentially reshaping regulatory oversight.
Executive Order to Target Banking Practices
According to the draft order, banking regulators will be instructed to investigate whether financial institutions have violated antitrust laws, consumer financial protections, or fair lending practices by cutting off accounts or services.
Institutions found in violation could face fines or legal action, and some cases would be referred to the Department of Justice. While the order could be signed this week, the White House may delay or revise its final form.
The move comes amid longstanding claims from crypto executives that the Biden administration pressured banks to distance themselves from digital asset companies, effectively limiting their access to the US financial system.
Crackdown on “Operation Choke Point 2.0”
The executive order also directs regulators to remove any policies that contributed to banks dropping customers, including crypto firms. Additionally, the Small Business Administration will review its banking policies for government-backed loans.
Crypto leaders have repeatedly accused federal agencies of orchestrating what they call “Operation Choke Point 2.0”—a reference to a 2010s-era Justice Department initiative that targeted payday lenders and other high-risk industries by pressuring banks to sever ties.
- Coinbase chief legal officer Paul Grewal testified in February that Biden-era regulators, including the FDIC, heavily scrutinized banks over crypto activities until many “relented under the pressure.”
- A Freedom of Information Act lawsuit revealed that the FDIC asked certain banks to pause crypto-related services, which Grewal argued proved the industry’s concerns were valid.
The alleged crackdown intensified after the collapse of FTX in 2022, which heightened regulatory scrutiny of the digital asset sector.
Political Debanking Also Under Review
Trump’s order reportedly extends beyond crypto to examine claims that banks have denied services to political conservatives. The draft does not name specific institutions but criticizes banks that cooperated with federal investigations into the January 6 Capitol riots, suggesting they may have targeted clients for political reasons.
Banks often refer to such account closures as “derisking,” a practice justified as avoiding legal, financial, or reputational risks. However, conservative groups argue that it amounts to political discrimination.
Regulatory agencies have started to back away from this practice. In June, the Federal Reserve announced it would no longer examine banks for reputational risk, following similar decisions by the Office of the Comptroller of the Currency and the FDIC.
A Potential Shift in Crypto Banking Policy
If implemented, Trump’s executive order could reshape the relationship between US banks and the crypto industry, potentially reversing years of what crypto leaders see as regulatory hostility.
The move is being closely watched by both digital asset firms and financial institutions, as it could influence crypto adoption, banking access, and regulatory enforcement in the US.
