AFFM Applauds Texas’ Pro-Free Market Resolution Against Federal Overreach

In another win for free markets, Texas is leading the charge to rein in federal overregulation with a recent resolution introduced by State Senator Tan Parker. The resolution urges Congress and the Trump administration to take action against rogue federal regulators who unjustly target legitimate industries and individuals under the guise of reputational risk.

The resolution supports Senator Tim Scott’s (R-SC), FIRM Act, which aims to stop regulators from using reputational risk to pressure banks into severing ties with lawful businesses. These bureaucrats have increasingly used vague guidelines to debank individuals and specific industries, often without due process.

Senator Parker’s resolution highlights the risks banks face under the current framework, where failing to comply with aggressive regulatory demands can result in massive fines or even criminal charges. While financial institutions play a critical role in preventing money laundering, drug trafficking, human trafficking, and terrorism financing, it is unjust for regulators to exploit these obligations to target industries for political or ideological reasons.

By calling for greater transparency and accountability from regulators, as well as modernizing anti-money laundering laws, Texas is setting an example for other states. The resolution underscores the need to focus time and resources on actual financial crimes, rather than punishing businesses simply for operating in legally approved industries.

Texas lawmakers are standing up for financial freedom and pushing back against overreach. As the battle against debanking continues, this resolution takes an important step towards protecting businesses, consumers, and the integrity of the financial system.

Read more about what other members of AFFM have to say on the FIRM Act HERE.