Trump Signs Executive Order to Stop Debanking of Crypto Industry

Highlights:

• President Trump signed an order stopping regulators from targeting banks serving the crypto industry.
• The new rule removes “reputational risk” language to prevent unfair account closures based on politics or religion.
• Trump’s second order expands 401(k) access, which lets 90 million workers invest in crypto and alternative assets.

President Donald Trump signed an executive order on Thursday to stop federal regulators from targeting banks and financial institutions that work with the crypto industry. According to a fact sheet from the White House, the digital assets sector has faced unfair debanking practices. These actions, it said, damage public trust in both banks and regulators. They also hurt people’s livelihoods, block payroll payments, and create heavy financial burdens for law-abiding Americans.

JUST IN: 🇺🇸 President Trump to sign executive order today targeting banking discrimination against crypto, religion, and politics.

— Watcher.Guru (@WatcherGuru) August 7, 2025

Regulators Ordered to Remove “Reputational Risk” to Stop Debanking

The directive mandates that federal banking regulators, including the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC), and the Federal Reserve (Fed), eliminate the term “reputational risk” from all their guidance, manuals, and policies. In the past, banks used this phrase to close accounts of people who did nothing wrong but were unpopular. Some banks even used it to hide closing accounts because of someone’s politics or religion. The new rule wants to stop banks from treating people unfairly like this. Any similar language that might lead to politically motivated account closures must be eliminated as well.

The order instructs the Small Business Administration to help reinstate clients unfairly denied services due to unlawful debanking. The Treasury Secretary is responsible for creating a detailed plan to address debanking practices. At the same time, federal regulators must examine financial institutions for any discriminatory policies and take corrective measures, which may include imposing fines or requiring consent decrees.

Trump said:

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

The White House shared some examples of unfair treatment by banks. One big bank stopped helping with ticket payments for a Republican event, but changed its mind after people complained. Federal regulators told banks to watch for payments to companies like Bass Pro Shop or Cabela’s, or for words like “Trump” or “MAGA” in payment notes, even when there was no proof of any crime. Also, two big banks reportedly refused to provide services to businesses owned by Trump.

Trump Expands 401(k) Options to Include Crypto and Alternative Assets

Trump also signed a second executive order called “Democratizing Access to Alternative Assets for 401(k) Investors.” This order aims to give more than 90 million private-sector workers the chance to invest in alternative assets, including digital assets. These investments were previously mostly available to government employees and select institutional investors. Right now, many private-sector 401(k) holders can only choose from a limited range of mutual funds and traditional investments.

David Sacks, Trump’s AI and crypto advisor, praised the move on the social media platform X. He said it will allow over 90 million American workers to access the same alternative assets available to government employees. This change will help them achieve better returns and diversify their portfolios.

President Trump signed two important Executive Orders relevant to the crypto community today:

“Guaranteeing Fair Banking for All Americans” prevents the denial of banking services based on political beliefs, religious beliefs, or lawful business practices. This means unfair…

— David Sacks (@davidsacks47) August 7, 2025