Trump Targets Discrimination Against Conservatives in Banking

On Thursday, President Trump signed an executive order aimed at addressing what he described as discrimination against conservatives by major banks. He has instructed regulators to look into and potentially penalize financial institutions for what he terms “politicization or illegal desertion.”

There’s been a longstanding grievance among conservatives regarding their treatment by the banking system, and it’s an issue Trump is keen to tackle in his second term.

The executive order states, “Financial institutions engage in unacceptable practices to limit access to financial services for law-abiding individuals and businesses based on political or religious beliefs or legal business activities.”

The document emphasizes the principle that such practices are incompatible with free societies and that banking services should be provided based on legitimate risk assessments.

It also mandates banking regulators to investigate and take action against institutions that violate the Consumer Protection Act and the Equal Credit Opportunity Act.

Additionally, the order directs the Small Business Administration (SBA) to guide agencies responsible for reinstating services that have allegedly been denied due to “politicized or illegal defiling actions.”

Moreover, banking regulators are instructed to reevaluate regulations around “reputation risks” that might influence their supervisory inquiries.

Trump’s personal experience with sudden account closures seems to underscore these concerns. He recounted to CNBC a time when he had a substantial amount of cash but faced abrupt account restrictions. “I loaded cash into many accounts, and they told me, ‘Sorry, we’re not you. You’re leaving for 20 days,’” he shared.

The topic of “debating” access to banking services has gained traction recently, especially as the crypto sector has raised issues regarding its challenges in obtaining financial support.

Support for Trump’s initiatives has emerged, particularly from the cryptocurrency industry, which also claims to be facing unfair restrictions. They welcomed his executive order promoting access to alternative assets within 401(k) plans.

“Eliminating the discriminatory practices against legal crypto companies sends a clear message. The era of justifying financial exclusion due to ‘reputation risk’ is over,” stated Summer Mersinger, CEO of the Blockchain Association. She added that the new order creates opportunities for consumers to explore diverse investment options, fostering responsible wealth-building.