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A group of Senate Republicans have put forward legislation that would prevent banks from debanking American citizens.

Some shit you should know before you read: If you’re unaware, American financial institutions are allowed to debank customers—meaning they can close accounts or deny services—if they deem a client to pose a reputational risk or a compliance burden. This often happens without warning or clear explanation, leaving individuals and businesses locked out of the financial system. While banks argue this is necessary for risk management and regulatory compliance, critics claim it has been weaponized to target industries and individuals based on political or social biases. Some notable figures who have been debanked include Nigel Farage, the British politician and Brexit leader, who was dropped by Coutts Bank allegedly due to his political views; Kanye West, who lost his JPMorgan Chase account following his antisemitic remarks; and Andrew Tate, who has claimed multiple banks closed his accounts due to his controversial online presence.

What’s going on now: In a press release, Senate Banking Committee Chairman Tim Scott (R-SC) introduced the Financial Integrity and Regulation Management (FIRM) Act, a bill designed to eliminate the use of reputational risk in banking regulations and prevent federal agencies from using it to supervise financial institutions. Scott argued that regulators have “abused reputational risk by carrying out a political agenda against federally legal businesses,” leading to debanking, where individuals and companies are denied access to financial services without clear justification. “This discriminatory and un-American practice should concern everyone,” Scott stated, noting that his bill is “the first step in ending debanking once and for all.”

The bill is backed by all Republican members of the Senate Banking Committee, including Senators Cynthia Lummis (R-WY), John Kennedy (R-LA), Mike Rounds (R-SD), Thom Tillis (R-NC), and Pete Ricketts (R-NE). Lummis, a strong advocate for financial freedom and digital assets, said, “We’re putting these rogue regulators on notice—their days of unchecked power are over.” Kennedy argued that debanking has been used to “discriminate against customers and debank individuals because they disagree with their politics,” while Rounds described it as an “abuse of federal power to divert services from those with which they may not agree.”

This all comes as Democrats and some financial regulators push back, arguing that banks must be able to assess risks—including reputational harm—to protect their institutions and customers. Senator Elizabeth Warren (D-MA), a high-ranking Democrat on the committee, acknowledged concerns about unfair debanking but warned against imposing regulatory oversight.