WASHINGTON — On August 7, President Donald J. Trump signed an Executive Order intended to prevent financial institutions from refusing or closing accounts for lawful businesses or individuals based on “reputational risk,” political or religious beliefs, or other non-illegal activity. The order directs federal banking regulators to remove “reputational risk” from examination materials, review past account closures for bias, and require remediation where appropriate. It also instructs the Small Business Administration to work with lenders on reinstating customers who were wrongly removed and asks the Treasury Department to propose a coordinated approach to address politicized or unlawful debanking.

Relevance to adult creators and studios

Adult performers and studios have reported account closures by banks and payment processors despite operating legally. Industry groups, including the Free Speech Coalition (FSC), have advocated for clearer access-to-banking rules.

Near-term effects

• Agencies must revise guidance; until new guidance is issued, current bank policies remain in effect.
• Institutions are expected to reassess prior closures. Affected customers should keep records of past correspondence.
• Agencies may take action against discriminatory practices, subject to how the order is implemented.

Early responses

The FSC welcomed the order. Some banking trade groups support a uniform national standard. Advocacy organizations stress that anti-money-laundering and anti-trafficking safeguards must remain intact.

What to track

• Publication of revised guidance from Treasury, FDIC, OCC, Federal Reserve, NCUA, and SBA
• Examples of reinstated accounts affecting adult-industry businesses
• Any related congressional action

For creators who lost banking access, outcomes will depend on the final guidance from regulators and how financial institutions update their compliance procedures.