Trump Targets Debanking: Executive Order Could Protect Crypto Access to Banks

U.S. President Donald Trump is reportedly weighing an executive order that would prohibit banks from denying services to politically disfavored industries—most notably cryptocurrency firms—in what could mark a significant policy shift for the American financial system.

According to The Wall Street Journal, the Trump administration’s Domestic Policy Council, led by Vince Haley, is drafting the order in response to growing allegations of sector-specific debanking, particularly against crypto, energy, and gun manufacturing companies. The move is seen as a response to the fallout from what critics have dubbed “Operation Chokepoint 2.0”—an alleged coordinated effort to sever crypto startups from the U.S. banking system.

The issue has gained new urgency following claims that at least 30 tech and crypto founders were denied access to banking services during the Biden administration. The sudden collapses of crypto-friendly banks like Silvergate, Signature, and Silicon Valley Bank in early 2023 only intensified fears that crypto was being targeted through financial channels.

Crypto-friendly voices, such as Custodia Bank CEO Caitlin Long, have said the banking squeeze has cost firms millions and could continue well into 2026. “Trump won’t have the ability to appoint a new Fed governor until January,” Long warned. “If the OCC and FDIC overturn their anti-crypto guidance but the Fed does not, where does that leave us?”

At a White House Crypto Summit in March, Trump directly addressed the issue, stating: “We are ending Operation Chokepoint 2.0.”

Industry Pressure Mounts

Executives from major U.S. banks—including JPMorgan Chase, Wells Fargo, and Citibank—have recently met with state officials in Texas and Oklahoma to discuss accusations that they unfairly denied services to specific sectors based on political views rather than economic criteria.

Just this week, the Federal Reserve formally eliminated “reputational risk” as a basis for evaluating banks, a move that had previously discouraged financial institutions from engaging with controversial or emerging industries such as crypto. The OCC and FDIC have also updated their regulatory guidance to reflect this shift.

In testimony to Congress, Federal Reserve Chair Jerome Powell clarified that banks are now permitted to serve crypto clients, stating:

“Banks are free to provide banking services to the crypto industry and crypto companies… Banks get to decide who their customers are, and that’s not our decision.”

This apparent regulatory reversal coincides with a broader realignment under Trump, who has positioned himself as a “pro-crypto president.” The administration’s support of legislation like the GENIUS Act—which passed the Senate and seeks to establish a clear federal framework for stablecoins—is viewed by many as an extension of this pro-industry posture.

A Turning Point for Crypto Banking?

The potential executive order would serve to codify what is quickly becoming a coordinated regulatory and legislative shift in favor of digital assets. It could compel banks to offer services to crypto businesses, removing longstanding barriers to entry for U.S.-based blockchain startups.

Some traditional financial institutions have already begun making moves in this direction. Bank of America is developing its own stablecoin, and JPMorgan plans to pilot its JPMD token on the Base network—a sign that Wall Street may be preparing for a more crypto-integrated future.

Still, industry leaders remain cautious. As Long noted, “It’s premature to say that debanking is over.” The next key test will be how regulators like the Federal Reserve act in tandem with upcoming Trump-led reforms.

If enacted, the executive order could reshape the U.S. financial landscape—both for crypto firms seeking legitimacy and for the traditional banking sector navigating a new political and regulatory reality.