Particle.news

Download on the App Store

Trump Signs Order Banning Politicized Debanking by Banks

The order takes effect immediately, triggering SBA demands to reinstate customers denied accounts under past reputational-risk guidance.

Image
President Donald Trump speaks while making an announcement about Apple with Apple CEO Tim Cook in the Oval Office, Wednesday, Aug. 6, 2025, in Washington. (AP Photo/Alex Brandon)
U.S. President Donald Trump speaks to members of the media, at the White House in Washington, D.C., U.S., August 1, 2025. REUTERS/Jessica Koscielniak/ File Photo

Overview

  • The executive order bars financial institutions from restricting services based on political views, religious beliefs or lawful business activities and authorizes federal agencies to enforce the prohibition.
  • It directs the Federal Reserve, FDIC and Office of the Comptroller of the Currency to remove all references to vague “reputational risk” standards from their exam manuals and guidance.
  • Regulators are required to audit past and current debanking policies and can impose fines, consent decrees or refer cases to the Justice Department for unlawful discrimination.
  • The Small Business Administration must now compel banks under its jurisdiction to make reasonable efforts to restore accounts for clients previously denied services due to politicized debanking.
  • Treasury Secretary Scott Bessent will lead development of a long-term policy strategy to safeguard fair banking access, and major lenders have signaled support as they await detailed implementation rules.