A draft executive order from the White House, reported by the Wall Street Journal on August 4, 2025, is targeting banks for “debanking” practices—closing accounts of conservatives and crypto firms—potentially violating the Equal Credit Opportunity Act, with fines as a penalty, amid a surprising shift from past regulatory hostility under Biden’s administration.
Historical context reveals “Operation Chokepoint 2.0,” a term coined by crypto advocate Nic Carter in 2023, alleging federal pressure on banks to cut ties with crypto businesses, supported by Coinbase’s 2024 FOIA lawsuit uncovering FDIC “pause letters” to banks, indicating a pattern of systemic exclusion now being challenged.
Data from a 2023 Treasury Department report on de-risking highlights that such practices drive financial activity underground, reducing AML effectiveness by 15-20% according to a Federal Reserve study, suggesting the order could reshape banking access and innovation if enforced.
