Trump Administration Considers Executive Order to Protect Crypto Firms
The Trump administration is reportedly considering an executive order to prevent banks from discriminating against cryptocurrency firms. This move addresses concerns over ‘Operation Chokepoint 2.0’ – alleged coordinated efforts by banks to deny services to politically unfavorable industries, including crypto businesses.
Understanding Operation Chokepoint 2.0
According to The Wall Street Journal, this initiative responds to claims that banks denied services to tech and crypto entrepreneurs. During the Biden administration, about 30 technology and cryptocurrency founders reportedly lost access to banking services, raising questions about financial inclusivity.
Industry and Political Response
Democratic Senator Elizabeth Warren advocates for fair banking access, stating services shouldn’t be denied based on political or industry considerations. Major banks like JPMorgan Chase, Citigroup, and Wells Fargo have defended their practices in meetings with state officials.
Impact on Cryptocurrency Sector
The March 2023 collapse of three crypto-friendly banks intensified debanking concerns. Some view this as targeting the crypto industry. Caitlin Long, founder of Custodia Bank, warns these issues may continue until 2026 despite potential regulatory changes.
Future Outlook
The crypto industry faces uncertainty amid ongoing banking discrimination debates. While the proposed executive order could improve financial access for crypto firms, significant challenges remain ahead.
