Senate Banking Committee Chairman Tim Scott issued a statement welcoming President Trump’s executive order aimed at combating “debanking” of federally legal businesses and law-abiding citizens. Scott framed the order as a step toward protecting access to financial services and curbing the use of supervisory approaches that deny services on the basis of political or religious affiliations. Scott tied the executive order to the committee’s oversight and legislative work, including hearings on debanking, engagement with Federal Reserve Chair Jerome Powell, and discussions with leaders from large consumer banks. He highlighted the Financial Integrity and Regulation Management (FIRM) Act, which seeks to eliminate “reputational risk” as a component of bank supervision, noting it advanced out of the committee in the 119th Congress, attracted endorsements from multiple industry bodies and state financial officers, and was followed by actions by federal financial regulators to remove reputational risk as a supervisory tool.
U.S. Senate Committee on Banking, Housing and Urban Affairs 2025-08-07
U.S. Senate Committee on Banking, Housing and Urban Affairs chair applauds Trump executive order to combat debanking
Senate Banking Committee Chairman Tim Scott welcomed President Trump's executive order to combat "debanking" of federally legal businesses, emphasizing its role in protecting financial access. Scott linked the order to the committee's oversight activities, including hearings with Federal Reserve Chair Jerome Powell and bank leaders. He highlighted the Financial Integrity and Regulation Management Act, which aims to remove "reputational risk" from bank supervision, noting its progress and industry support.