President Donald Trump could punish banks that have already taken steps to address allegations that they turned away customers for political or religious reasons, according to a draft of his forthcoming executive order on the issue known as debanking that was shared with Semafor.
The order, first reported by The Wall Street Journal and set for signing as soon as this week, would tackle a practice that’s provided fertile ground for crypto firms to bond with the president over a perceived cold-shoulder.
The draft would direct banking regulators to penalize financial institutions — whether through fines, consent degrees or “other disciplinary measures” — for “past or current, formal or informal, policies or practices” related to “politicized or unlawful debanking.”
That means that even banks that have already reversed course on those “policies or practices” under Trump could face penalties, although Trump has said he believes some of those decisions were made under Biden administration pressure.
“I believe that [Joe] Biden or Kamala [Harris] — and I don’t think they’re smart enough to do it, but the people that are surrounding the beautiful, resolute desk, you know, the high-IQ people that are radical left — I believe they told … the banking regulators, ‘Do everything you can to destroy Trump,’” Trump told CNBC earlier this week. “And that’s what they did.”
“You know, banks are not afraid of anything but a regulator,” Trump said. “Their regulators, and their wives.”
The White House did not return a request for comment on the draft shared with Semafor.