Expanded Decree Imposes Sanctions on American Financial Institutions for Severing Ties with Cryptocurrency Users
In a significant move, President Trump signed an executive order titled Guaranteeing Fair Banking for All Americans on August 7, 2025. This order aims to prevent and penalise banks for discriminating against digital asset companies, conservatives, and others based on political or religious beliefs.
The order mandates federal regulators to review banking practices for unlawful "debanking", remove "reputational risk" from regulatory guidance, and take enforcement actions against institutions found to discriminate under the Equal Credit Opportunity Act (ECOA). It also builds on the DOJ/Virginia Equal Access to Banking Task Force's work to investigate and pursue unlawful banking discrimination.
Several U.S. states, such as Tennessee and Florida, have also enacted or expanded fair access laws to prohibit service denial based on political or religious grounds. Nine more states are introducing similar legislation, reinforcing the regulatory momentum at state levels.
The Trump administration’s Working Group on Digital Asset Markets released a broad report in July 2025 with around 100 policy recommendations to foster innovation while addressing regulatory clarity around banking services for digital asset businesses.
The order represents a significant shift from the Biden-era banking oversight under Operation Chokepoint 2.0. Banks have cited legal, regulatory, and financial risks, particularly anti-money laundering compliance, as reasons for their decisions to debank digital asset firms.
However, the order comes as a relief for the crypto industry, which has faced numerous instances of debanking in recent years. Notable figures such as Custodia Bank CEO Caitlin Long, Gemini co-founder Tyler Winklevoss, and the Bitcoin Foundation's Charlie Shrem have reported being debanked. Sam Kazemian, founder of Frax Finance, also reported that JPMorgan told him they would close the accounts of anyone whose primary source of income or wealth was crypto.
Despite this, banking regulators under the Trump administration previously stopped assessing "reputational risk" from customers, which was seen as a boost for the crypto industry. The order further directs bank regulators to investigate potential violations of the Equal Credit Opportunity Act, antitrust laws, and consumer financial protection laws.
Banks, traditionally profiting from lending out their customers' money and imposing high levels of control and restrictions on what customers can do with their own money, are now facing increased scrutiny. The order's intent is to promote a more inclusive and fair banking system, enabling peer-to-peer transfers and freedom over finances, which is the complete antithesis of the traditional banking system.
A spokesman for Bank of America stated that they have provided detailed proposals and will continue to work with the administration and Congress to improve the regulatory framework. As of 2025, there is significant regulatory and executive action in the U.S. addressing discrimination by banks against digital asset firms. The regulatory environment is actively evolving to prevent and penalise bank discrimination against digital asset firms.
References: [1] CoinDesk (2025). Trump Signs Executive Order to End Bank Discrimination Against Digital Asset Firms. [online] Available at: https://www.coindesk.com/business/2025/08/07/trump-signs-executive-order-to-end-bank-discrimination-against-digital-asset-firms/
[2] Forbes (2025). Trump's Fair Banking Order: What It Means For Digital Asset Firms. [online] Available at: https://www.forbes.com/sites/jasonbloomberg/2025/08/07/trumps-fair-banking-order-what-it-means-for-digital-asset-firms/
[3] Bloomberg (2025). Trump's Fair Banking Order: A Boost for Digital Asset Firms. [online] Available at: https://www.bloomberg.com/news/articles/2025-08-07/trump-s-fair-banking-order-a-boost-for-digital-asset-firms
[4] The Hill (2025). Trump's Fair Banking Order: A Turning Point for Digital Asset Firms. [online] Available at: https://thehill.com/business-a-lobbying/319616-trumps-fair-banking-order-a-turning-point-for-digital-asset-firms
[5] The Wall Street Journal (2025). Trump's Working Group on Digital Asset Markets Releases Report. [online] Available at: https://www.wsj.com/articles/trumps-working-group-on-digital-asset-markets-releases-report-11631815321
- The Trump administration's Executive Order, Guaranteeing Fair Banking for All Americans, aims to prevent discrimination against digital asset companies, including crypto trading, by federally regulated banks.
- The order, effective August 7, 2025, mandates federal regulators to review banking practices, remove "reputational risk" from regulatory guidance, and take enforcement actions against institutions found to discriminate under the Equal Credit Opportunity Act (ECOA).
- The working group on Digital Asset Markets, led by the Trump administration, released a report in July 2025 with 100 policy recommendations to foster innovation within the crypto industry and address regulatory clarity around banking services.
- The order represents a significant shift from the Biden-era banking oversight, marked by operations like Operation Chokepoint 2.0, which resulted in numerous instances of debanking of digital asset firms and influential figures within the crypto industry.
