Sen. Lummis Urges Criminal Probe Into Alleged Politically Motivated "Debanking" of Trump, Family and Crypto Firms
Sen. Cynthia Lummis is intensifying her push against what she describes as politically driven "debanking" by major U.S. lenders, calling for a criminal investigation into banks she claims systematically cut off President Donald Trump, members of his family and digital asset companies.
In remarks dated Jan. 31, 2026, the Wyoming Republican said the account closures amounted to a coordinated effort. She cited alleged cases involving Trump, Eric Trump, Donald Trump Jr., Melania Trump and crypto businesses nationwide.
Lummis and other Republicans have framed the claims as part of what they call "Operation Choke Point 2.0," a reference to the Obama-era program that critics said pressured banks to distance themselves from legal but politically disfavored industries such as payday lenders and firearms dealers. In the newer version, critics argue, regulators used similar pressure to steer banks away from cryptocurrency firms and political opponents of the Biden administration.
The House Financial Services Committee published a report on Nov. 30, 2025, alleging the Biden administration enabled debanking of digital asset businesses by leaning on banks through regulatory channels. The committee argued regulators did not directly order banks to terminate crypto relationships, but conveyed that continuing to serve those clients could trigger heightened scrutiny.
In November 2025, JPMorgan Chase closed accounts tied to Jack Mallers, the CEO of Strike, a Bitcoin payments company. Lummis said at the time that "Operation Choke Point 2.0 regrettably lives on."
By June 2026, U.S. Attorney Jeanine Pirro had issued subpoenas to major banks including JPMorgan and Bank of America as part of an investigation into alleged targeted debanking practices. Separately, Trump has filed lawsuits against JPMorgan and Capital One, alleging the banks shut down accounts associated with him and his family for political reasons. The closures were reported to have occurred after Jan. 6, 2021.
Trump signed the "Guaranteeing Fair Banking for All Americans" executive order on Aug. 7, 2025, directing regulators to address politicized debanking and setting review timelines for December 2025. Lummis, who chairs the Senate Banking Subcommittee on Digital Assets, has tied the dispute over politically exposed customers to the broader regulatory headwinds facing the cryptocurrency sector.
On the legislative track, Lummis is backing structural changes through her proposed CLARITY Act, which aims to provide regulatory certainty for digital asset firms and limit the kind of ambiguous supervisory pressure she says can lead to account terminations.
For crypto investors, two developments stand out: the CLARITY Act's movement through Congress and the outcome of Pirro's investigation. If investigators uncover documented evidence of coordinated, politically motivated account closures, the repercussions could reshape how banks approach both crypto clients and politically exposed persons.
