Trump Signs Executive Order to Protect Crypto Firms From Banking Discrimination
President Donald Trump signed an executive order on August 7 aimed at stopping what his administration calls unfair banking practices against the cryptocurrency industry.
The order prohibits federal regulators from using “reputational risk” as a reason to pressure banks into cutting ties with legal crypto businesses.
According to the administration, digital asset companies have faced disproportionate regulatory pressure, including sudden account closures, payroll interruptions, and restricted access to financial services—all despite operating within legal boundaries.
The move directly targets a pattern of behavior critics have dubbed “Operation Choke Point 2.0”—an unofficial term used to describe what many in the crypto space view as coordinated efforts to debank the industry without formal enforcement actions.
The term draws parallels to a 2010s Department of Justice initiative that sought to limit banking for industries seen as high-risk, such as firearms and payday lenders. In the current case, the crypto sector has become the focus, with firms reporting unexplained debanking since early 2023, often based on vague concerns rather than actual violations.
Industry leaders and pro-crypto lawmakers say the practice has stifled innovation, created uncertainty for startups, and weakened the U.S. regulatory environment.
Trump’s order formalizes recent guidance from the Federal Reserve, FDIC, and Office of the Comptroller of the Currency, which have already moved away from reputational risk as a factor in banking oversight. It also echoes legislative proposals in Congress seeking to limit regulatory overreach in politically sensitive sectors.
The executive order is part of a broader effort by the Trump administration to establish clearer protections for crypto companies operating within the U.S. financial system.
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