Bitcoin News Today: Trump Ends Crypto Debanking Policy as Bitcoin Rises 2% and Ethereum Jumps 6%

The Trump administration marked a pivotal regulatory shift in the United States' approach to cryptocurrencies by officially ending Operation Chokepoint 2.0 on August 7, 2025. The initiative, launched under the previous administration, had been criticized for discouraging banks from offering services to crypto firms on ideological grounds. The termination of this policy allows crypto companies to access traditional banking services more freely, aligning with broader efforts to support innovation and financial inclusion in the digital asset space [6].

President Trump signed an executive order to prevent politically motivated debanking of crypto-related businesses, emphasizing the need for a neutral and fair financial ecosystem. The order also mandates investigations into potential bias by financial institutions against both conservative voices and digital asset companies, with the possibility of sanctions for banks that restrict services based on ideological affiliations [4]. This action is seen as a direct response to industry concerns over exclusionary practices and represents a clear signal of regulatory support for the crypto sector.

The market reacted positively to the news, with major cryptocurrencies experiencing price increases. Bitcoin rose by 2%, while Ethereum saw a more significant jump of 6%. These movements reflect growing investor confidence in a regulatory environment that is becoming more crypto-friendly [1]. The administration's move is consistent with its broader strategy to promote digital assets, including a separate executive order that permits the inclusion of cryptocurrencies in 401(k) retirement plans. This initiative aims to expand investment options and encourage mainstream adoption among a wider demographic [5].

The shift in policy is also reflected in the actions of private sector firms. On August 4, 2025, FRNT Financial Inc. announced it had begun purchasing Bitcoin, while iSpecimen Inc. revealed plans to create a $200 million corporate treasury backed by Solana. These developments suggest that the crypto industry is gaining traction in traditional finance circles, with companies increasingly integrating digital assets into their financial strategies [2][3].

The termination of Operation Chokepoint 2.0 is expected to enhance the operational capabilities of crypto companies by reducing barriers to banking services. This move aligns with the administration’s campaign promises to support the digital assets sector and foster an environment conducive to innovation. Analysts suggest that these policy changes may encourage greater institutional participation in the crypto market and attract new investment from both domestic and international sources.

Sources:

[1] en.coinotag.com

[2] Barchart.com, FRNT Financial Inc. Announces BTC Purchases

[3] Barchart.com, iSpecimen to Establish $200M Corporate Treasury Built Around Solana Cryptocurrency with Blockarrow

[4] Instagram, Trump signs executive order to protect crypto firms

[5] x.com, Donald Trump Takes Office as 47th US President

[6] WANE, Trump orders federal regulators to probe alleged bank discrimination against conservatives