President Donald Trump’s recent executive order aims to end what his administration describes as unfair banking discrimination against bitcoin and other lawful businesses.
Custodia Bank founder Caitlin Long offers a detailed analysis of the order and its likely effects.
Oversight shifts to the SBA
Long notes that a key change is the installation of the Small Business Administration (SBA) as an independent overseer above the traditional banking regulators—the FDIC, Federal Reserve, and OCC.
She argues this move reflects a lack of trust in these agencies’ willingness to address politically motivated debanking, particularly against bitcoin firms.
Kelly Loeffler’s appointment
Trump’s decision to appoint Kelly Loeffler, a former senator and CEO of institutional bitcoin platform Bakkt, to head the SBA is seen as significant in the bitcoin community.
Loeffler’s leadership is interpreted as a clear sign that the administration is serious about changing how regulators treat bitcoin companies.
Political bias in regulatory agencies
Long draws attention to the political leanings within agencies like the Fed and FDIC, citing that up to 92% of staff donations in recent elections went to Democratic candidates.
She suggests this may have contributed to the partisan enforcement of debanking policies during the previous administration.
Broad protections for lawful bitcoin businesses
The executive order’s language targets any “politicized or unlawful debanking,” focusing on lawful business activity rather than naming bitcoin specifically.
Long emphasizes:
“Banks that refused to serve or debanked lawful bitcoin companies are on the hook.”
The effectiveness of the order, Long says, will ultimately be judged by whether banks that debanked Custodia and similar institutions are required to reinstate them.
“If they reinstate us, then the EO succeeded.”
