Overview

• The executive order forbids banks from denying or restricting services based on customers’ political beliefs, religious views or lawful business activities.
• Federal regulators will audit past and current debanking practices, pursuing enforcement actions such as fines or consent decrees where discrimination is found.
• The Small Business Administration must require financial institutions to reinstate customers previously denied services due to politicized debanking.
• Major banks including JPMorgan Chase and Bank of America have publicly backed the push for regulatory reforms while awaiting specific implementation guidelines.
• The directive extends measures across lawful sectors like cryptocurrency and firearms and follows regulators’ June pledges to drop reputational risk standards.