Trump Signs Executive Order to Protect Bitcoin and Crypto from Debanking

Executive Order to End Politicized Debanking

President Donald J. Trump has taken a significant step to address what he describes as unfair practices within the U.S. financial system by signing an executive order aimed at ending politicized debanking. This new policy prohibits banks and federal regulators from denying financial services to Americans based on their political beliefs, religious affiliations, or lawful business activities.

The executive order, titled “Guaranteeing Fair Banking for All Americans,” is designed to eliminate guidelines and practices that enable what the administration calls “politicized or unlawful debanking.” A key focus of the order is the removal of “reputational risk” as a factor in bank decision-making, which has been widely criticized as a tool for discrimination.

The White House highlighted several instances where financial institutions have allegedly engaged in such practices. These include a major banking institution that denied ticket-payment processing for a Republican event, only reversing its decision after public backlash. Additionally, federal regulators have reportedly encouraged banks to flag individuals for transactions with companies like Bass Pro Shop or Cabela’s, or for using terms such as “Trump” or “MAGA” in payment descriptions without any evidence of criminal activity. Two major banks are also said to have denied services to Trump’s own business.

“The banks discriminate against conservatives, they discriminate against religion, because they’re afraid of the radical left, I suspect,” Trump stated. “Nobody knows the banking industry better than me, and I’m not going to let them take advantage of you any longer.”

The order mandates that federal regulators remove all language in their guidance and examination materials that supports politicized or unlawful debanking. It also instructs regulators to review financial institutions for current or past policies encouraging such practices and to take remedial actions, including fines or consent decrees. Cases involving unlawful debanking based on religion are to be reported to the Attorney General.

Furthermore, the order requires the Small Business Administration to push financial institutions under its jurisdiction to reinstate clients previously denied services for these reasons. It also directs federal regulators to develop a comprehensive strategy to prevent such practices in the future, including potential legislative solutions.

The White House noted that the order addresses issues raised during a Senate Banking Committee hearing earlier this year, where witnesses testified about being “debanked” for political or ideological reasons.

Expanding Access to Alternative Assets

In addition to the executive order on banking, Trump signed a second order titled “Democratizing Access to Alternative Assets for 401(k) Investors.” This order allows more than 90 million American private-sector workers to invest in alternative assets, including digital assets, which have traditionally been available mainly to government employees and certain institutional investors.

Under the current system, many private sector workers with 401(k) accounts have access only to a limited selection of mutual funds and traditional investments. According to Trump’s AI and crypto czar, David Sacks, the change will “allow more than 90 million American workers… to access the same range of alternative assets… that are available to government workers, for better returns and diversification.”

The White House described this move as a way to “level the playing field” between private and public sector workers, offering Americans more tools to achieve long-term financial security. Digital asset advocates view the policy as a major win for the cryptocurrency industry, which has often struggled with access to traditional banking services.

“No American should be denied access to financial services because of their political or religious beliefs,” the fact sheet states, adding that investment opportunities should not be “limited by outdated rules or unfair restrictions.”

This dual executive action reflects Trump's commitment to addressing perceived inequities in the financial system and promoting greater access to investment opportunities for all Americans.