In a major shift toward crypto-friendly policy, the Trump administration is reportedly preparing an executive order that could put an end to years of quiet discrimination against crypto companies by banks.
According to a Wall Street Journal report published Tuesday, the White House plans to crack down on financial institutions that have denied services to crypto firms often under regulatory pressure or political influence. The executive order, which could be signed as early as this week, signals a strong push to roll back what many in the industry have called “Operation Chokepoint 2.0.”
A Turning Point for Crypto-Banking Relations
Under the previous administration, crypto businesses frequently found themselves debanked without explanation. Banks cut ties, applications for basic services were rejected, and even established firms like Kraken and Gemini were left in the cold all without a formal rule or law saying they had done anything wrong.
That shadow campaign, dubbed Operation Chokepoint 2.0, was first brought to light by venture capitalist Nic Carter in 2023. Carter described it as a coordinated effort involving multiple federal agencies including the SEC, FDIC, and DOJ to sideline the crypto industry by pressuring banks behind the scenes.
“The U.S. government is using the banking sector to organize a sophisticated, widespread crackdown against the crypto industry,” Carter warned at the time.
And the list of affected companies is long. Jesse Powell, founder of Kraken, and Tyler Winklevoss of Gemini have both shared stories of being debanked simply for operating in the crypto space. a16z co-founder Marc Andreessen even revealed on a 2024 episode of The Joe Rogan Experience that over 30 tech founders were caught in the crossfire of these debanking campaigns.
What the Executive Order Would Do
If signed, the new executive order will require federal banking regulators to investigate whether institutions violated consumer protection, antitrust, or credit access laws by cutting off crypto clients. Those found guilty could face serious consequences ranging from fines to referrals to the Department of Justice.
The order is also expected to instruct agencies to review or scrap any internal policies that contributed to the debanking. Lawmakers like Senator Cynthia Lummis have been pushing for this level of oversight, especially after reports that the Federal Reserve either blocked or delayed access to essential infrastructure like Fed master accounts for crypto firms.
Crypto Still Faces Scrutiny but Change Is Coming
Regulators have long justified harsh treatment of crypto by citing risks of fraud or illicit activity. But industry leaders argue this logic is flawed and unfairly generalized.
“As in any industry, there are bad actors,” Carter noted. “But choosing to shape crypto banking policy purely through the lens of these actors is like debanking all asset managers because of Bernie Madoff, or cutting off energy firms because of Enron.”
Now, with the White House stepping in, the tide may finally be turning. If this executive order goes through, it could mark a historic shift bringing fairer access to banking for crypto companies and potentially reigniting innovation in a sector that’s long felt boxed out.
