Democrats Block Presidential Bank Ownership in Banking Reform Bill

Senate Democrats have introduced legislation to tighten banking conflict-of-interest rules after a Trump family crypto company received approval for a national bank charter.

The Ending Presidential Corruption in Banking Act, sponsored by Senator Elizabeth Warren and colleagues, aims to block presidents, vice presidents, and their immediate families from owning or controlling banks.

The proposed law would prohibit the Federal Reserve Board, Office of the Comptroller of the Currency (OCC), and Federal Deposit Insurance Corporation (FDIC) from approving bank applications if a covered official or family member owns or controls the applicant.

The bill also requires a review of certain approvals granted after January 20, 2025, within 60 days of enactment. Agencies must terminate approvals if covered persons owned or controlled the applicant, increasing compliance risks for politically connected firms.