ADF says it withdrew objection to PayPal bank insurance application

Alliance Defending Freedom said November 5, 2026, it had withdrawn its objection to PayPal’s application for deposit insurance for a proposed Utah industrial bank, citing its understanding of PayPal’s policies.

The legal advocacy organization, whose stated work includes religious freedom and free speech, said its decision reflected its understanding that the revised policy applies only to unlawful discrimination and would not target lawful religious practice or speech. Its statement described the application as a request to the Federal Deposit Insurance Corp. for insurance for PayPal Bank.

PayPal’s acceptable use policy, in a version marked last updated November 4, 2026, sets out prohibited uses of the service. It bars certain transactions relating to violence or discriminatory activity based on protected characteristics, including engaging in such activity or encouraging, promoting or celebrating it. The characteristics listed include gender, disability, religion, race, national origin and sexual orientation, as well as other characteristics protected under applicable law.