ICYMI: AFFM Member Calls for Congressional Action to End Government-Driven Debanking, Citing Louisiana’s Resolution on the Issue

“Our state will not stand by while federal regulators pick winners and losers in the marketplace. Louisiana knows the importance of protecting economic freedom, and we are willing to lead in a smart, effective way.”

In case you missed it, Michael Lunsford, executive director of Citizens for a New Louisiana and an Americans for Free Markets (AFFM) member, penned an op-ed in the Times-Picayune / The Advocate urging Congress to take more action to end government-driven debanking, following President Trump’s recent executive order (EO) outlining a plan to end the practice.

In his piece, Lunsford states that the roots of debanking stem from rogue regulators under the Obama and Biden Administrations who weaponized their oversight of banks and drove them to close accounts — a trend documented in a recent America First Policy Institute (AFPI) research report:

“Debanking happens when financial institutions deny services for certain individuals or businesses based on perceived political, religious or social reasons. A recent paper from the America First Policy Institute explains how political pressure from Washington regulators — beginning under the Obama and Biden administrations — weaponized regulators to blacklist entire industries, like firearms and crypto.”

He goes on to highlight recent resolutions within Louisiana that urge Congress to lead and take action to end government-driven debanking:

“Here in Louisiana, we’ve taken the issue seriously. Earlier this year, the Legislature passed a resolution urging Washington to end government-driven debanking. That resolution sent a clear message: Our state will not stand by while federal regulators pick winners and losers in the marketplace. Louisiana knows the importance of protecting economic freedom, and we are willing to lead in a smart, effective way.”

Additionally, Lunsford spotlights the Financial Integrity and Regulation Management (FIRM) as an area of success and notes the need to modernize outdated anti-money-laundering (AML) and know-your-customer (KYC) rules to restore fairness and accountability to the financial system:

“Bipartisan proposals such as the Financial Integrity and Regulation Management Act would ensure that regulators cannot weaponize their powers to choke off lawful businesses. Lawmakers should take steps to update outdated practices such as anti-money-laundering and know-your-customer rules to better target real threats while reducing unnecessary burdens on banks and consumers alike.”

To end government-driven debanking and build on President Trump’s recent EO, Lunsford closes his piece by underscoring Louisiana’s steadfast commitment to keeping federal overreach and rogue regulators out of America’s financial system, serving as a model to protect financial freedom for all Americans:

“The principle is simple: Financial services should never be used as a tool for political punishment. Whether you run a small business or simply want peace of mind that your savings account won’t be targeted, every Louisianan has a stake in this fight. By standing firm, our state can help lead the way in keeping government out of the banking system and ensuring that every American has fair access in the marketplace.”

To read the full article in Times-Picayune / The Advocate, click HERE.