Trump Plans to Sign Executive Order Ending Biden’s Crypto Banking Restrictions
US President Donald Trump is preparing to sign a new executive order that will reserve former President Joe Biden’s anti-crypto stance.
Specifically, the order is expected to rollback policies linked to "Operation Chokepoint 2.0" - a phrase originally coined by Castle Island Ventures partner Nic Carter referring to the purported effort by Biden’s administration to limit banking access for crypto firms.
The term references a similar initiative from the Obama era, Operation Choke Point, which targeted industries such as payday lending and firearm sales.
Coinbase Claims FDIC Letters Prove ‘Operation Choke Point 2.0’ Against Crypto IndustryCoinbase argues that the FDIC’s warning letters to banks signal a deliberate government campaign to restrict the crypto sector’s access to banking services, accusing regulators of waging an ‘Operation Choke Point 2.0’ against digital assets.
Sources suggest the order could have effects on the Federal Reserve’s policies regarding master accounts. Federal chartered banks have master accounts, allowing access to the Fed and for direct payments.
Crypto-focused banks like Custodia struggled to obtain such accounts under Biden’s tenure, significantly restricting their ability to serve customers.
Senior White House officials are scheduled to meet to assess potential legal challenges before the executive order is signed.
The executive order could also extend beyond banking policy, with some sources indicating it may include provisions stating that should not be classified as securities.
Since taking office on 20 January, Trump has already signed two crypto-related directives. The first, signed in January, established a Presidential Working Group on Digital Asset Markets.
Trump Signs Bitcoin Executive Order But There’s a Catch... Or is There?Donald Trump’s Bitcoin reserve will be funded with seized assets, with the government not intending on adding to the stockpile, despite the Secretaries of Treasury and Commerce being authorised to do so
The second, signed last week, directed the creation of a strategic Bitcoin reserve and a separate digital asset stockpile for non-Bitcoin cryptocurrencies. According to a post by White House Crypto and AI Czar David Sacks, Trump has now signed an executive order to create a strategic Bitcoin reserve. The reserve will be funded exclusively with seized Bitcoin.
"The Reserve will be capitalized with Bitcoin owned by the federal government that was forfeited as part of criminal or civil asset forfeiture proceedings. This means it will not cost taxpayers a dime," he explained.
The US government owns 200,000 BTC and has pledged to not sell any of the BTC deposited in the reserve.
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