Key Takeaways
- Donald Trump is expected to sign an executive order preventing banks from denying services to crypto firms.
- The Federal Reserve has dropped “reputational risk” from bank exams, a move welcomed by the crypto industry.
- The crackdown known as Operation Chokepoint 2.0 may be finally coming to an end under the new administration.
U.S. President Donald Trump is preparing to sign an executive order that would prevent banks from refusing services to crypto companies based on their industry or political associations, according to a report by The Wall Street Journal.
The move comes amid growing GOP pressure on major banks accused of politically motivated discrimination—an echo of what the crypto world has come to call Operation Chokepoint 2.0.
Major Banks Scramble as Trump Team Drafts Order
According to WSJ, the potential order would bar banks from cutting off customers due to their political views or the industries they work in, such as crypto. It would also empower regulators to penalize financial institutions that engage in such practices.
Behind the scenes, banks like JPMorgan, Citibank, and Bank of America have already met with Republican state officials in an attempt to address growing concerns about banking discrimination.
Adding weight to the effort, the Federal Reserve recently eliminated the “reputational risk” criterion from bank examination protocols.
This change, while technical, could open the door for banks to resume or expand services to digital asset firms, many of whom were cut off under the previous administration.
Crypto Industry Sees Relief From Operation Chokepoint 2.0
The Biden-era crackdown—dubbed Operation Chokepoint 2.0 by industry insiders—had led to a wave of “debanking” across the U.S. crypto sector.
While there was never a formal policy document, internal communications and testimonies revealed an informal but coordinated effort to push crypto firms out of the traditional banking system.
High-profile industry leaders like Ripple’s Brad Garlinghouse, Kraken’s Jesse Powell, and Eric Trump have all publicly said they were denied banking services due to their crypto ties or political affiliations.
Since returning to the office, Trump has promised to reverse the damage, pledging to end Operation Chokepoint 2.0 and make the U.S. a global crypto hub.
Already, his administration has begun to roll back restrictive regulations—targeting SEC rules like SAB 121 and new DeFi reporting mandates—and is now looking to further loosen capital rules to attract more financial innovation.
