Five Things To Know About The "Debanking" Executive Order

President Trump recently signed an executive order¹ (the Order) aimed at preventing the so-called practice of "debanking," which refers to actions taken by banks and other financial services providers to restrict the ability of certain individuals, groups, or industries to access financial products and services for reasons seemingly unrelated to the individualized risks presented by each customer. Specifically, the Order seeks to limit "politicized or unlawful debanking" by ensuring that clients are not denied access to financial services products and services because of their constitutionally or statutorily protected beliefs, affiliations, or political views and that banking decisions are instead made on the basis of "individualized, objective, and risk-based analyses." Although the Order's legal authority is dubious, banks that seek to end or have previously ended relationships with clients in the cryptocurrency industry or clients with conservative-leaning beliefs