Trump to Sign Executive Order Threatening Penalties for Banks That "Debank" Crypto Companies

President Donald Trump is reportedly preparing to sign an executive order that would protect cryptocurrency companies and individuals from banking discrimination, commonly known as "debanking." The draft order directs regulators to investigate if banks have violated any laws and threatens to fine firms involved, according to reports citing The Wall Street Journal.

The executive order could be signed as early as this week, though timing remains subject to change. The order will direct agencies to probe whether any banks violated antitrust laws, the Equal Credit Opportunity Act, consumer financial protection laws, or other regulations when refusing services to crypto businesses and politically conservative customers.

Banks found in violation could face financial penalties and regulatory enforcement actions, including monetary penalties, consent decrees, or other legal consequences. The proposed measure represents one of Trump's most concrete actions toward fulfilling his campaign promise to make America the "crypto capital" of the world and addresses long-standing industry complaints about banking access.

Crypto industry executives have long alleged that the Biden administration conspired to cut crypto off from the financial system, leading to widespread account closures and service denials. The executive order marks a significant policy shift as the Trump administration seeks to establish more crypto-friendly regulatory frameworks and ensure equal access to traditional banking services for digital asset companies.

Related Policy Context

The executive order on crypto debanking represents part of a broader regulatory transformation under the Trump administration. This week's banking discrimination measures build upon the comprehensive crypto regulatory framework report released by the President's Working Group on Digital Assets, which outlined plans to position the United States as the global leader in digital assets through market structure clarity, streamlined banking regulations, and cryptocurrency-specific tax legislation.

The debanking penalties also complement the Securities and Exchange Commission's newly launched Project Crypto initiative, which aims to modernize digital finance regulations and move away from the previous administration's enforcement-heavy approach. SEC Chair Paul Atkins' Project Crypto specifically addresses regulatory barriers that have hindered crypto businesses' access to traditional financial services, creating a coordinated effort across multiple agencies to establish crypto-friendly policies that protect both innovation and investor interests.