Senator Cynthia Lummis is intensifying her efforts against what she perceives as selective banking practices that impact customers based on political affiliation. The Wyoming Republican is advocating for a criminal probe into major US banks, asserting that they unlawfully debanked former President Donald Trump, his family, and digital asset firms due to political motivations.
The senator recently outlined her concerns, indicating a coordinated campaign targeting individuals connected to Trump. She pointed out that prominent figures, including Trump himself, his children, and notable digital asset firms, have faced unjust account closures, framing these incidents as components of what Republicans have branded as "Operation Choke Point 2.0." The original Operation Choke Point, initiated during the Obama administration, pressured financial institutions to cut ties with legally operating yet politically unpopular sectors such as payday lending and firearms.
The sequel, according to critics, aims to suppress crypto enterprises and political dissent against the Biden administration using similar tactics. A report from the House Financial Services Committee suggested that the Biden administration has played a role in pressuring banks to disengage from digital asset businesses. While regulators did not explicitly instruct banks to sever ties with crypto clients, they allegedly created an environment where banks felt compelled to do so to avoid regulatory difficulties.
For instance, in November 2025, JPMorgan Chase shut down accounts linked to Jack Mallers, CEO of Strike, a Bitcoin payments platform. This action prompted Lummis to remark on the regrettable persistence of politically motivated debanking.
As of June 2026, US Attorney Jeanine Pirro has issued subpoenas to major financial institutions, including JPMorgan and Bank of America, as part of the investigation into these alleged targeted debanking mechanisms.
In the wake of these events, former President Trump has initiated legal proceedings against JPMorgan and Capital One, claiming these banks unlawfully closed accounts related to his family for political reasons, particularly following the events of January 6, 2021.
In August 2025, Trump enacted an executive order titled "Guaranteeing Fair Banking for All Americans," which directs financial regulators to address the issue of politicized debanking, setting deadlines for review by December 2025.
Lummis, who leads the Senate Banking Subcommittee on Digital Assets, is asserting her role in these investigations and drawing links between the debanking of political figures and the broader issues faced by the cryptocurrency sector.
In addition to pursuing investigations and legal action, Lummis is advocating for significant legislative reforms. She has introduced the CLARITY Act, which seeks to clarify regulations for digital asset firms, aiming to eliminate the kind of regulatory ambiguity that has reportedly led to politically motivated debanking.
Investors should closely monitor two key developments: the advancement of the CLARITY Act through legislative channels and the outcomes of Pirro's investigation into banking practices. Should evidence emerge that substantiates claims of coordinated, politically driven account closures, the resulting repercussions may transform the banking landscape regarding its dealings with cryptocurrency and politically connected individuals.