(The Center Square) – In light of President Donald Trump signing an executive order that effectively bans politically-driven debanking, a Kentucky lawmaker plans to introduce legislation codifying fair access to banking for all Americans.
Trump’s recent EO forbids federal banking regulators such as the Small Business Administration from using “reputation risk” when regulating or assessing financial institutions such as private banks, as The Center Square reported.
The administration believes the practice can and has led to financial institutions closing or restricting the accounts of clients – as well as refusing services to new clients – based on individuals’ controversial but constitutionally protected viewpoints or actions.
Rep. Andy Barr, R-Ky., promised Friday to introduce legislation that would cement Trump’s order into law.
“From Operation Chokepoint under the Obama-Biden administration to recent examples of religious groups, firearms manufacturers, and even energy companies being debanked, the American people have had enough of woke discrimination from Wall Street and weaponized regulators,” Barr said. “President Trump’s bold executive action is a major step forward – and now we’re going to make sure it becomes law.”
In 2013, the U.S. Department of Justice designated financial institutions that did business with firearm dealers and payday lenders as “high risk.” Republicans called the operation illegal, saying it incentivized lenders to deny services to conservative clients.
“Banks should be assessing legitimate financial risk – not the political views of hardworking and lawful individuals or businesses,” House Majority Leader Steve Scalise, R-La., said Friday. “I’m grateful to Congressman Andy Barr for leading the effort to codify the President’s Executive Order in the House and fighting to ensure every American gets a fair shake at the bank regardless of their political views.”
Barr’s bill will also echo Trump’s EO by requiring SBA to inform and reinstate victims of unlawful debanking actions. Firearm manufacturers and dealers, cryptocurrency firms, Christian nonprofits, and fossil fuel companies have constituted the majority of debanking victims.
Senior Vice President of the National Shooting Sports Foundation, Lawrence Keane, joined multiple other affected groups in praising the proposed legislation.
“There is no room in the American economy for unelected Wall Street bankers to decide winners-and-losers based solely on how individuals or entities choose to exercise their Constitutionally-protected rights,” Keane said.
