Trump Administration Targets ‘Unlawful Debanking’ as OCC Warns Major Banks

President Donald Trump’s campaign against the debanking of legally operating but controversial industries — including digital asset firms — has prompted the Office of the Comptroller of the Currency (OCC) to release a new report confirming that U.S. banks previously limited access to financial services for certain sectors. The agency is now warning that such practices could lead to penalties.

The OCC’s report, which reviewed nine major national banks such as JPMorgan Chase, Bank of America and Citigroup, found that between 2020 and 2023 several institutions used internal policies that restricted specific industries from obtaining banking services. These restrictions often required additional layers of review or heightened approval processes, especially for businesses viewed as environmentally sensitive or misaligned with the banks’ stated values. Many of the referenced banks had publicly posted policies tied to environmental, social, or governance considerations.

In response to Trump’s August executive order directing regulators to crack down on unfair debanking, the OCC said it intends to hold institutions accountable and could refer cases to the U.S. attorney general. However, the report did not specify which laws may have been violated, and the OCC declined to clarify how potential legal breaches would be prosecuted. Trump’s order had cited consumer protection laws and rules related to unfair competition, though banks are often exempt from certain provisions.

During the final days of Trump’s previous term, the OCC rushed to finalize a rule requiring banks to evaluate customers based on quantifiable risk rather than excluding entire categories such as firearms manufacturers, coal producers, payday lenders, adult entertainment businesses or crypto firms. That rule was halted under President Joe Biden, leaving regulatory uncertainty in place.

Critics argue the OCC’s latest report doesn’t go far enough. Analysts such as Nicholas Anthony of the Cato Institute say regulators themselves have historically encouraged banks to weigh reputational risk, contributing to debanking trends. Meanwhile, House Republicans recently issued their own findings accusing federal regulators of playing a significant role in limiting access to banking for controversial industries.