Executive order may target Operation Choke Point 2.0 and push for regulatory overhaul
Former President Donald Trump is reportedly preparing to sign an executive order directing U.S. banking regulators to investigate whether crypto firms and political conservatives have been unfairly debanked, according to a report by The Wall Street Journal.
The order, which could be signed as early as this week, would compel regulators to examine violations of antitrust laws, consumer protections, and fair lending practices by financial institutions that may have denied services to specific groups.
Crypto executives claim regulators pressured banks to drop digital asset clients in a campaign dubbed “Operation Choke Point 2.0.”
Regulatory Cleanup and DOJ Involvement
The draft order reportedly demands that U.S. bank regulators eliminate internal policies that contributed to discriminatory banking practices, especially toward crypto clients. It also calls on the Small Business Administration (SBA) to review its loan guarantee programs and ensure small businesses aren’t unfairly denied access to banking.
Regulators will also be expected to refer any potential violations to the Department of Justice for further legal action.
Crypto’s Ongoing Debanking Battle
Many in the digital asset space have accused the Biden administration of working behind the scenes to cut crypto off from traditional finance. This effort, critics argue, ramped up following the collapse of FTX in late 2022, which sparked heightened regulatory scrutiny.
Coinbase Chief Legal Officer Paul Grewal testified before Congress earlier this year that the FDIC pressured banks to distance themselves from crypto, even going so far as to ask institutions to pause crypto-related services.
A Freedom of Information Act (FOIA) request by Coinbase revealed that FDIC officials had sent letters urging banks to reconsider their crypto partnerships — a move the industry sees as clear evidence of coordinated debanking.
“Operation Choke Point 2.0” and Political Backlash
The debanking accusations have been branded “Operation Choke Point 2.0,” a reference to a 2010s-era DOJ initiative that targeted payday lenders and other high-risk businesses by limiting their access to banking.
In addition to targeting the crypto industry, the executive order is expected to address alleged political debanking, where conservatives claim their bank accounts or services were suspended due to ideological views.
The order criticizes banks that reportedly helped federal investigators track transactions linked to the Jan. 6 Capitol incident.
While banks argue they engage in “derisking” to avoid financial or reputational harm, federal agencies like the Federal Reserve and OCC have begun backing away from enforcing such discretion.
What This Means for Crypto
If signed, Trump’s order could mark a major turning point in how crypto is treated by traditional banks and regulators. It may also introduce a more favorable regulatory environment for decentralized finance (DeFi) and digital assets under a potential Trump administration.
The move is being closely watched by both crypto advocates and political groups concerned with financial censorship.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.