Virtual Legality

Virtual Legality is a continuing series discussing the law, video games, software, and everything digital, hosted by Richard Hoeg, of the Hoeg Law Business Law Firm (Hoeg Law).

Legal Analysis | Executive Orders, Politicized Debanking, and the Cost of Steam's Surrender (VL)

Aug 20, 2025 • 44 mins

Lawyer Richard Hoeg explores the legal complexities surrounding an executive order on fair banking. He clarifies misunderstandings about US government branches and examines challenges in implementing objective banking standards. The episode explores the concept of politicized debanking, its implications, and the roles of federal regulators and the SBA. Hoeg discusses legislative and regulatory responses, the SBA's 7(a) loan program, and FTC Act Section 5's implications. He addresses legal challenges to FTC authority and executive order limitations, concluding with Steam's response and broader legal implications.

Key Points

Payment processors like Visa and Mastercard are not directly bound by executive orders, which only govern the executive branch's enforcement priorities.
The executive order discussed is more focused on preventing debanking based on political or religious beliefs rather than addressing the specific issue of censoring adult content in video games.
Without concrete laws passed by the legislative branch, executive orders provide limited power and are subject to interpretation and compliance by the agencies and institutions they aim to regulate.

LINKS

REACTIONS https://x.com/RealHypnotic1/status/1954200113552777525 https://x.com/Vara_Dark/status/1953709588894654645

THE EXECUTIVE ORDER https://www.whitehouse.gov/presidential-actions/2025/08/guaranteeing-fair-banking-for-all-americans/

THE LAW https://www.sba.gov/funding-programs/loans/7a-loans https://www.congress.gov/crs_external_products/IF/HTML/IF12244.web.html https://www.ftc.gov/news-events/news/press-releases/2022/11/ftc-restores-rigorous-enforcement-law-banning-unfair-methods-competition https://corpgov.law.harvard.edu/2024/08/23/federal-court-issues-nationwide-injunction-blocking-ftc-non-compete-ban/

ESCALATION https://x.com/videogamedeals/status/1956032475085336823

Speakers

Richard Hoeg

Host • 100%

Chapters

0:14	Introduction and Episode Overview
1:20	Analyzing Vera Dark's Tweet and Executive Order Misunderstandings
4:47	Encouraging Audience Interaction; Overview of US Government Branches
7:31	Reading and Analyzing the Executive Order on Fair Banking
13:32	Issues with Objective Risk-Based Standards in Banking
18:54	Politicized Debanking: Definitions, Implications, and Limitations
26:27	Federal Banking Regulators and SBA's Role in Enforcing Executive Orders
31:04	Combating Politicized Debanking: Legislative and Regulatory Options
33:12	SBA's 7(a) Loan Program and FTC Act Section 5 Implications
37:07	Legal Challenges to FTC Authority and Executive Order Limitations
39:49	Summary: Effectiveness of the Executive Order on Fair Banking
41:42	Steam's Capitulation and Broader Legal Implications
43:25	Legal Disclaimer and Closing Remarks

Transcript

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