Executive Order Highlights

  • Directs bank regulators to review any policies that contributed to banks dropping crypto or politically sensitive clients.

  • Instructs the Small Business Administration (SBA) to examine its loan guarantee practices.

  • Requires some cases to be referred to the Department of Justice for potential prosecution.

'Operation Choke Point 2.0'

Crypto leaders claim the Biden administration pressured banks to cut ties with crypto businesses after the FTX collapse, calling it 'Operation Choke Point 2.0'. A Coinbase-backed FOIA lawsuit revealed FDIC letters asking institutions to pause crypto banking activities, fueling the claims.

Political Debanking

The executive order will also examine claims that conservative individuals or groups were denied financial services for political reasons. Banks have defended such actions as 'derisking' measures, but Trump's order signals a significant regulatory shift.


[WEEKLYBLOCKCHAIN] Trump to Probe Crypto and Political Debanking Claims: WSJ

U.S. President Donald Trump reportedly plans to sign an executive order instructing banking regulators to investigate allegations of 'debanking' in the cryptocurrency sector and among conservatives.

Key points of the executive order

According to reports, this executive order directs regulators to check whether banks have blocked financial services for cryptocurrency firms or individuals/groups with certain political inclinations. If illegal activities are confirmed, the related financial institutions may face fines or legal sanctions.

Additionally, the executive order instructs the Small Business Administration (SBA) to review its loan guarantee policies and requires that some violations be referred to the Department of Justice for follow-up actions.

Controversy over 'Operation Choke Point 2.0'

The cryptocurrency industry has claimed that the Biden administration pressured banks to avoid dealings with crypto firms following the collapse of FTX in late 2022. Coinbase's legal chief Paul Grewal testified in a 2024 hearing that the FDIC pressured banks to distance themselves from cryptocurrency and stablecoin businesses. The release of documents showing that the FDIC requested certain firms to cease crypto-related activities has led to assessments that these claims are not conspiracy theories but facts.

This controversy was propagated by venture capitalist Nic Carter under the name 'Operation Choke Point 2.0'.

Investigation into allegations of political debanking

This executive order also includes an investigation into claims that conservative individuals or groups were denied financial services for political reasons. Some conservatives are raising concerns about financial institutions cooperating with the government regarding the January 6 Capitol riot investigations. In contrast, banks argue this is part of risk management practices.

Possibility of changes in financial regulation

The Fed, OCC, and FDIC have decided to halt account reviews citing 'reputational risk' starting this year. This executive order from the Trump administration may accelerate this shift.


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