Executive order directs banking regulators to eliminate politicized or unlawful debanking practices

What changed

Executive Order 14331 directs federal banking regulators to remove reputation-risk concepts that could support politicized or unlawful debanking from guidance and examination materials, review past conduct, and consider remedial or enforcement action. It requires individualized, objective, risk-based banking decisions.

Who it affects

• Banks and other financial-services providers, their customers, and advisers diligencing access to banking services

What is still open

• How each regulator will revise guidance, regulations, examinations, and enforcement practices

What it means for an advisor

• Reassess counterparty and service-provider diligence for objective risk criteria, including where lawful digital-asset activity previously affected access.