Guaranteeing Fair Banking for All Americans

This Executive Order directs federal banking regulators and the Small Business Administration (SBA) to take steps to stop what it calls “politicized or unlawful debanking” — the practice of denying or restricting financial services because of a customer’s political or religious beliefs or lawful business activities. It requires regulators to remove guidance language (like “reputation risk”) that could be used to justify such actions, to review past practices and institutions, and to push covered financial institutions to identify and reinstate customers who were improperly denied services. The order also directs the Treasury to develop a broader strategy to address politicized debanking and authorizes regulators to pursue enforcement or referrals where laws (including the Equal Credit Opportunity Act) were violated. Potential impact: the order aims to limit regulators’ and banks’ ability to use non‑legal factors (such as reputational concerns tied to politics) to restrict accounts or services, could lead to banks being asked to reinstate customers and reverse some restrictions, and may prompt changes in supervisory guidance, enforcement actions, and future rulemaking. It could also raise tensions with banks’ existing compliance and risk-management obligations (for example, anti‑money laundering or sanctions screening).