Banking laws must ensure fairness as voters push back against politicized regulation

OPINION:

Free markets thrive on predictability and fairness. When government officials inject political considerations into regulation, they undermine the very foundation that allows businesses and individuals to invest, innovate and prosper.

A level playing field on which banking services are determined by objective risk standards rather than political ideology is essential for economic dynamism.

This approach resonates with Americans across the political spectrum. A new national survey of likely American voters, commissioned by Americans for Free Markets, found overwhelming support for the idea that government should apply rules fairly and without political bias.

The message is clear: Americans want a level playing field where free markets can thrive and where government’s role is to set clear, objective rules, not to pick winners and losers.

The survey results are striking. Seventy-two percent of voters — including majorities of Democrats, independents and Republicans — support President Trump’s executive order to prevent the continued weaponization of banking through financial regulation. Ninety-one percent agree that federal regulators should enforce banking laws using objective standards, not political or reputational considerations.

Eighty-nine percent believe a healthy free market economy depends on clear rules applied evenly, not government actions that reward or punish businesses based on politics.

Fewer than 12% of Americans support giving regulators broad discretion to act based on subjective judgments or political disagreements.

These numbers demonstrate the wisdom of the American people, who are naturally inclined toward free markets, and they reflect a national sentiment that regulators have been wrongly inserted into what should be objective, unbiased decisions.

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Businesses depend on clear rules, and they deserve consistent application from one administration to the next, no matter which political party is represented. When regulatory standards shift with the political winds, everyone loses. Entrepreneurs hesitate to innovate. Lenders restrict credit. Communities lose access to financial services.

The result: The economy loses the dynamic resolve that has always been a source of America’s strength.

The survey shows that Americans understand a thriving economy requires the rule of law to be consistently applied. They recognize that free markets function best when government provides a stable, objective framework with sensible and infrequent regulatory intervention. They don’t want regulators playing favorites or punishing businesses for political reasons.

The Trump administration’s executive order represents an important step toward restoring objectivity to financial regulation, but executive actions can be reversed under future administrations. To protect the durability of these reforms and uphold economic freedom for future generations, we need legislation grounded in free market principles.

The feedback from voters is clear: Congress should enact legislation that ensures objective regulatory standards are consistently applied, transparently enforced and free from political considerations. These standards should protect consumers, ensure financial system stability and safeguard national security so that regulators may not impose their own political preferences on the businesses they oversee.

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More than three-quarters of those surveyed by Americans for Free Markets support updating federal banking laws, many of which were written decades ago, to better reflect today’s realities and ensure rules are consistent nationwide.

Eighty-two percent of voters agree that private businesses should be able to make their own decisions without fear that federal regulators will retaliate against them for political reasons. This supermajority crosses party lines.

Lawmakers of both parties should seize this opportunity to codify objective regulatory standards and protect private businesses from politicized regulatory pressure. This is what the American people want. The only question is whether Congress will answer the call.

• David Ibsen is executive director of Americans for Free Markets. 

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