Trump Targets Debanking: Executive Order Might Safeguard Crypto Access to Banks

U.S. President Donald Trump is apparently weighing an executive order that would restrict banks from rejecting services to politically disfavored industries– most significantly cryptocurrency companies– in what could mark a significant policy shift for the American financial system. According to The Wall Street Journal, the Trump administration’s Domestic Policy Council, led by Vince Haley, is preparing the order in response to growing allegations of sector-specific debanking, especially against crypto, energy, and weapon manufacturing businesses. The issue has gained new urgency following claims that at least 30 tech and crypto founders were denied access to banking services during the Biden administration. The abrupt collapses of crypto-friendly banks like Silvergate, Signature, and Silicon Valley Bank in early 2023 just heightened worries that crypto was being targeted through monetary channels.

Crypto-friendly voices, such as Custodia Bank CEO Caitlin Long, have stated the banking capture has cost firms millions and could continue well into 2026. At a White House Crypto Summit in March, Trump directly addressed the issue, stating: “We are ending Operation Chokepoint 2.0.”

Market Pressure Mounts

Executives from major U.S. banks– including JPMorgan Chase, Wells Fargo, and Citibank– have recently met with state authorities in Texas and Oklahoma to discuss allegations that they unfairly denied services to particular sectors based on political views instead of financial criteria. Just this week, the Federal Reserve officially removed “reputational risk” as a basis for assessing banks, allowing financial institutions to engage with controversial or emerging industries such as crypto. The OCC and FDIC have also updated their regulatory guidance to reflect this shift.

In testimony to Congress, Federal Reserve Chair Jerome Powell clarified that banks are now permitted to serve crypto clients, stating: “Banks are free to offer banking services to the crypto market and crypto companies … Banks get to decide who their customers are, and that’s not our decision.”

This potential executive order could codify a regulatory and legal shift in favor of digital assets, obliging banks to provide services to crypto businesses. It may remove barriers for U.S.-based blockchain startups. Some traditional banks have already started moving in this direction, with Bank of America developing its own stablecoin and JPMorgan planning to pilot its JPMD token on the Base network.

Despite these developments, industry leaders remain cautious. The next crucial test will be how regulators like the Federal Reserve align with upcoming Trump-led reforms. If implemented, the executive order could reshape the U.S. financial landscape for both crypto companies seeking legitimacy and the traditional banking sector adapting to a new political and regulatory environment.