Overview

• President Trump is expected to sign the executive order this week, threatening fines, consent decrees and other measures for banks that drop customers over political views or cryptocurrency ties.
• The draft directs the Federal Reserve, FDIC and OCC to investigate potential violations of the Equal Credit Opportunity Act, antitrust laws and consumer financial protection statutes.
• Regulators must dismantle internal “reputational risk” policies linked to Obama and Biden initiatives and refer suspected debanking practices to the Department of Justice.
• Major banks including JPMorgan Chase and Bank of America have proactively updated policies to bar political discrimination and consulted Republican state attorneys general.
• The Small Business Administration will review lending guarantee practices to ensure banks are not indirectly penalizing customers based on ideology or digital-asset activities.