By now you’ve probably heard about it: Donald Trump’s executive order on “debanking.” On the surface, it sounds like a victory for free speech and fairness.

The order, signed on August 14, 2025, directs the Treasury Department and federal regulators to ensure that banks cannot deny services based on political or religious beliefs.

It came just days after Trump accused JPMorgan Chase and Bank of America of shutting him out, a claim both banks deny. But whether or not Trump himself was the target, the bigger issue is this: will this executive order fix a broken system, or will it create more chaos for U.S. banks?

Supporters say the order guarantees fair access to financial services, preventing banks from weaponizing their power against lawful businesses or individuals. That sounds reasonable, no one should be denied a bank account for their ideology.

But here’s the problem: the order is vague. Regulators have 180 days to figure out enforcement, and banks don’t know if they’ll face new rules, quiet oversight, or both. That uncertainty is enough to make compliance a nightmare.

For years, lenders have relied on “reputational risk” to cut ties with clients in controversial industries. Trump’s order bans that rationale. Now, banks worry they’ll be forced to keep risky relationships, exposing themselves to lawsuits, scandals, or shareholder backlash.

As one lawyer put it, the wording is “open to interpretation,” which means enforcement could feel arbitrary. And in banking, uncertainty is poison.

Nevertheless, the principle is right: access to the financial system shouldn’t hinge on politics. But the execution looks rushed and politically charged. Instead of clarity, Trump has delivered confusion, and confusion in banking always comes with a cost.