Should Congress regulate financial institutions' ability to deny services?

Awaiting Vote
Bill Summary

This bill seeks to amend the Federal Reserve Act to prohibit large banks, credit unions, and payment card networks from denying services to lawful individuals or businesses based on political or reputational concerns. Institutions covered by the bill must rely on objective risk metrics established in advance to ensure fair access to all customers. This bill also established a private civil right of action, allowing those denied access to these services to sue in federal court without facing traditional obstacles. Sponsor: Sen. Kevin Cramer (Republican, North Dakota)
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Opponents say

•    "The approach in the Fair Access to Banking Act would be a misguided reaction to the U.S. government pressuring banks and other financial institutions to close customer accounts. Rather than respond to the government’s role in this saga, the bill would instead target financial institutions. This approach fails to confront the root cause of the problem—governments increasingly using financial systems as tools of political influence and control." Source: Nicholas Anthony, CATO Institute 


•    "For me this is straightforward: it doesn’t matter who you voted for, what you believe in, or the origin of your last name, people shouldn’t be arbitrarily denied access to their banks, locked out of their accounts or stripped of their banking privileges." Source: Sen. Elizabeth Warren (Democrat, Massachusetts) 

Proponents say

•    "Financial services are vital to the success of all businesses and should be based on sound data and risk management –– not as a means to target certain industries or political issues. I am proud to support legislation that curtails unfair efforts to block lawful businesses’ access to banking due to political beliefs or affiliations and instead restores reliance on proper analytical criteria." Source: Sen. John Boozman (Republican, Arkansas) 


•    "It’s wrong for banks to single out individuals or industries for political and social reasons. This legislation guarantees fairness for essential employers in Louisiana, such as oil and gas development." Source: Sen. Bill Cassidy, M.D. (Republican, Louisiana)