Crypto Debanking Order Targets Political Bias in Banking
President Trump will sign an executive order directing federal regulators to probe crypto debanking for political bias in banking. The order tasks agencies to investigate potential antitrust, fair lending, ECOA and consumer protection violations by banks that engaged in crypto debanking or closed accounts of conservative groups. It mandates scrapping internal derisking policies and assigns the SBA to review loan guarantees for digital-asset and political businesses. The directive also questions banks’ cooperation in January 6 inquiries and data sharing with government agencies. SEC Commissioner Hester Peirce supports stronger privacy protections for private transactions. Traders should monitor this regulatory shift, as improved bank-crypto relations could enhance liquidity, reduce operational hurdles and support market stability.
Bullish
This executive order is expected to have a bullish impact on the crypto market. In the short term, the directive to curb crypto debanking and eliminate derisking policies may boost confidence among digital-asset firms, leading to increased liquidity and reduced operational hurdles. Traders could see improved access to banking services, which can lower transaction costs and support price stability. In the long term, clearer regulatory guidance and stronger privacy protections are likely to foster a more predictable banking environment for crypto firms, encouraging institutional participation and sustained market growth.