President Trump Signs Executive Order Banning Political Debanking, Emphasizing Illegal Targeting of Digital Asset Industry.
President Donald Trump signed an executive order on Thursday, prohibiting federal regulators from allowing financial institutions to deny services based on political beliefs, religious convictions, or legal business activities. The order specifically emphasized protecting the digital asset industry, which was allegedly targeted by "Operation Chokepoint 2.0".
According to the Fact Sheet released by the White House, the order requires federal banking regulators to remove the concept of "reputational risk" from guidance documents and inspection content, which was considered a tool for political debanking. The Small Business Administration (SBA) is required to compel financial institutions to restore services to customers previously denied unlawfully.
Treasury Secretary Scott Bessent must develop a comprehensive strategy against debanking, including the possibility of proposing new legislation. Federal regulators are tasked with reviewing financial institutions to identify policies that encourage debanking and implement remedial measures, including penalties.
Ending "Operation Chokepoint 2.0"
The order officially terminates "Operation Chokepoint 2.0" – a term describing federal efforts to deny banking services to legal industries for political reasons. The White House affirms: "The digital asset industry was also a target of unfair debanking initiatives – the Trump administration has ended Operation Chokepoint 2.0 once and for all."
The document cites specific incidents, including a major bank refusing to process payments for a Republican Party event, and accuses regulators of encouraging flagging transactions containing keywords like "Trump" or "MAGA" or businesses such as Cabela's or Bass Pro Shops without evidence of wrongdoing.
Trump revealed that two major banks had refused to provide services to his own businesses, demonstrating the prevalence of the issue. At a Senate Banking Committee hearing earlier in the year, many witnesses shared personal experiences of debanking, revealing the widespread nature of this phenomenon.
The administration describes the order as a measure protecting economic freedom and constitutional rights against regulatory overreach. Trump argues that banks "discriminate against conservatives" and religious groups, committing to end practices that erode trust and harm livelihoods.
The order pays special attention to reviewing complaints related to religious-based debanking and transferring files to Attorney General Pam Bondi for processing. This demonstrates the administration's strong determination to hold violators accountable.
For the digital asset industry, this order is considered an important step in creating a favorable legal environment. The cryptocurrency industry has long complained about systematic service denials by banks, despite completely legal business operations.
The White House emphasizes that the order aims to address systemic abusive practices that undermine freedom of speech and economic opportunities. This move is expected to open new development spaces for businesses in financial and technological sectors, especially those previously considered "politically sensitive".
