Crypto Policy Reversal: Trump to Target Operation Chokepoint 2.0
President Donald Trump is preparing to sign a new executive order aimed at reversing anti-crypto banking restrictions put in place during the Biden administration. The initiative seeks to dismantle Operation Chokepoint 2.0, an alleged effort to debank cryptocurrency firms by limiting their access to banking services.
According to Bo Hines, Executive Director of the Presidential Working Group on Digital Assets, the upcoming order will halt discriminatory banking policies that have targeted Bitcoin (BTC), Ethereum (ETH), and other digital assets. The term “Operation Chokepoint” originates from an Obama-era program that restricted banking services for industries like firearms and payday lenders—a strategy critics claim was revived under Biden to suppress crypto.
The executive order, expected in the coming weeks, could significantly alter Federal Reserve policies related to crypto-friendly banks. Financial institutions like Custodia Bank have struggled to obtain Federal Reserve master accounts, limiting their ability to provide crypto banking services. If implemented, Trump’s policy could open doors for digital asset banks and encourage broader financial adoption of cryptocurrencies.
Regulatory Uncertainty: Congress and Crypto Banking Access
The executive order aligns with an ongoing Congressional investigation into crypto debanking. In January, House Oversight Committee Chair James Comer (R-KY) launched an inquiry into whether major U.S. banks were pressured into denying banking services to crypto companies.
The Federal Deposit Insurance Corporation (FDIC) has also been under scrutiny, with recent document disclosures suggesting regulatory pressure on banks regarding crypto industry partnerships. This has fueled concerns about financial censorship and overreach, with Senator Elizabeth Warren (D-MA)—a vocal crypto skeptic—recently stating:
“I don’t think for a second you should be locked out of our banking system.”
Despite Warren’s history of anti-crypto legislation, her statement signals a potential shift in political sentiment toward the industry.
Trump’s Bitcoin Strategy: U.S. Crypto Reserve?
In addition to ending crypto debanking, Trump is reportedly considering the creation of a U.S. Bitcoin Reserve—a strategic government-held cryptocurrency stockpile. This move would store Bitcoin and other digital assets seized through federal law enforcement and allow the U.S. to capitalize on Bitcoin’s appreciation without direct taxpayer funding.
The potential policy could mirror strategies used by nations like El Salvador, which has nationalized Bitcoin holdings as part of its broader economic strategy. If executed, this would be one of the most significant pro-crypto policy shifts by a U.S. administration.
Stock Market Downturn and Recession Concerns
These crypto policy shifts come at a time of economic uncertainty. The Dow Jones Industrial Average and S&P 500 have both experienced sharp declines amid rising inflation, global conflicts, and interest rate concerns.
President Trump has not ruled out the possibility of a U.S. recession, stating that the economy may face a “period of transition” as tariffs and fiscal policy adjustments take effect. These uncertain economic conditions could further highlight Bitcoin’s role as a hedge asset, attracting institutional investors seeking alternatives to traditional financial markets.
What This Means for Crypto Investors
For crypto traders, investors, and blockchain entrepreneurs, Trump’s upcoming executive order could bring:
✅ Easier banking access for crypto businesses and exchanges
✅ A shift in Federal Reserve policies benefiting crypto-friendly banks
✅ A potential Bitcoin reserve, legitimizing digital assets as a national financial instrument
✅ Increased political interest in crypto regulation, creating new opportunities and risks
However, regulatory clarity will be key. While Trump’s executive order signals a pro-crypto stance, market uncertainty remains high.
Final Thoughts: A Game-Changer for Crypto?
With Operation Chokepoint 2.0 potentially ending, and government interest in Bitcoin rising, the U.S. crypto industry may be on the brink of a major policy shift.
But with economic concerns, stock market downturns, and global uncertainty, crypto remains a volatile space—both politically and financially. As this situation develops, investors should stay vigilant, informed, and prepared for rapid market movements.