President Donald Trump is set to sign an executive order aimed at dismantling banking restrictions on cryptocurrency firms that were implemented during the Biden administration. The order is expected to ease access to financial services for crypto businesses and reshape the United States’ crypto policy.
Reversing ‘Operation Chokepoint 2.0’
The executive order is designed to reverse the restrictions associated with “Operation Chokepoint 2.0,” a controversial initiative that allegedly pressured financial institutions to deny services to crypto-related businesses. The move has been widely anticipated by industry leaders who believe that the previous administration’s policies hindered the growth of the crypto sector.
Bo Hines, Executive Director of the Presidential Working Group on Digital Assets, confirmed that the order would address these restrictions, though specifics about the content remain undisclosed. “The industry can expect something in short order,” Hines added.
Impact on Federal Reserve Policies
Trump’s executive order could also target policies at the Federal Reserve that restricted crypto-focused banks from obtaining master accounts. These accounts are critical for banks to transact directly with the Federal Reserve and offer services to clients across the nation. Under the Biden administration, banks like Custodia Bank were denied master accounts, limiting their capacity to serve crypto firms.
Despite growing calls for regulatory change, the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) have yet to rescind any of their anti-crypto policies. However, Federal Reserve Chairman Jerome Powell recently acknowledged concerns over the increasing number of crypto debanking cases, noting that the Fed would take a fresh look at the issue.
Elizabeth Warren Shifts Stance on Crypto Banking
Senator Elizabeth Warren has also signaled a willingness to collaborate with the Trump administration on resolving issues surrounding crypto banking access. At a recent Senate Banking Committee hearing, Warren described debanking as a serious issue that needs to be addressed. This marks a shift in her stance on cryptocurrency regulation, as she previously advocated for stricter oversight.
Warren now appears to support ensuring that banks cannot arbitrarily deny services to crypto firms without clear justification.
Trump’s Ongoing Focus on Crypto Policy
This executive order will be Trump’s third related to cryptocurrency since his return to office. The first, signed in January, established the Presidential Working Group on Digital Asset Markets. The second order, signed last week, directed the creation of a U.S. government strategic Bitcoin reserve and a digital asset stockpile.
Reports suggest that this new executive order may also address stablecoin regulations, potentially clarifying that stablecoins should not be classified as securities. If signed, the order could significantly impact the cryptocurrency industry’s regulatory landscape, particularly in the banking sector.
A senior White House official stated that the legal details of the order are currently under review. While no specific signing date has been confirmed, sources indicate it could happen within the week.
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