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WASHINGTON — Federal Trade Commission Chairman Andrew Ferguson sent letters Thursday to the chief executives of PayPal, Stripe, Visa and Mastercard, warning against debanking practices, including denying access to financial services based on a customer’s lawful business activities.
“It is inconsistent with American values to deny law-abiding individuals the ability to run their legitimate businesses and feed their families because they attracted the ire of rogue American officials, overzealous activists, or, more worryingly, foreign governments seeking to control public discourse,” the letters state. “That is why President Trump’s August 7, 2025, Executive Order on debanking makes clear that it is unacceptable to debank law-abiding citizens due to ‘political affiliations, religious beliefs, or lawful business activities.’”
The executive order prohibits banks, savings associations, credit unions and other financial service providers from restricting access to accounts, loans or other services based on a customer’s lawful business activities that the institution may disagree with or view unfavorably for political reasons.
Following the order, the Office of the Comptroller of the Currency issued a report on debanking that identified several sectors, including adult entertainment, as facing potential discrimination due to activities considered inconsistent with certain financial institutions’ values.
Ferguson’s letters state that companies engaging in deplatforming or denying services to such customers could face Federal Trade Commission investigations and possible enforcement action.
Possible Pressure on Banks via Card Brands
The letters to Visa and Mastercard also reference the role of payment networks and providers, noting concerns about financial institutions that restrict access to services for these reasons. Ferguson wrote that it is “critical” for card networks not to allow unlawful debanking by member institutions, including banks that process transactions on their systems.
“Consumers cannot reasonably avoid this harm, particularly where, as is almost always the case, the First Amendment-protected activity that triggered the adverse action against them had no logical connection to, or material bearing on, their commercial relationship with the payment provider or network,” Ferguson wrote.
The letters suggest that payment networks may play a role in addressing practices by financial institutions that deny services under these circumstances.
The potential for additional oversight comes as questions remain about the extent of regulatory action from banking agencies, including the Federal Deposit Insurance Corporation and the National Credit Union Administration.
Proposed rules would restrict those agencies from taking action against institutions for providing services to individuals or businesses engaged in lawful activities that may be viewed as presenting reputational risk. However, those rules would still allow banks to make decisions regarding customers based on considerations tied to safety and soundness.
It remains unclear how enforcement priorities will be applied across different industries, including those identified in prior regulatory reports.
