Bitcoin News Today: Trump to Sign Executive Order Probing Crypto Banking Restrictions

The U.S. crypto landscape could be on the brink of a major regulatory shift following reports that President Donald Trump is preparing to sign an executive order targeting what critics describe as an unofficial regulatory crackdown on the digital asset industry. The proposed order would investigate whether federal agencies violated antitrust or fair lending laws when they allegedly pressured banks to cut ties with crypto firms, particularly after the FTX collapse. If implemented, this could signal a reversal of what industry leaders have referred to as "Operation Choke Point 2.0," an informal strategy that limited access to banking services for crypto businesses. The White House has also accelerated work on a broader crypto policy framework, emphasizing clarity and reduced regulatory uncertainty, which could encourage billions in new capital to flow into the sector [1].

The executive order could directly impact the sector's ability to access traditional financial infrastructure. By scrutinizing the conduct of regulators like the FDIC, the administration may pave the way for banks to re-engage with crypto firms. Coins like stablecoins and platforms such as Coinbase, which rely heavily on U.S. banking connections, could see immediate gains. Tokens associated with U.S. innovation—Ethereum, Chainlink, and Solana—may also benefit from improved liquidity and access to fiat on-ramps [1]. However, the market is expected to closely watch whether enforcement actions follow the order and whether institutions like JPMorgan or Wells Fargo begin resuming crypto-related services.

A key legislative win for the sector came earlier this year, as President Trump signed a bill establishing the first federal framework for dollar-backed stablecoins. The move is expected to bolster U.S. leadership in the global stablecoin market and could drive innovation and financial inclusion. Analysts suggest that the U.S. stablecoin market, with an estimated potential of $3.7 trillion, could significantly impact Bitcoin’s price, potentially pushing it toward $1.4 million, although this projection remains speculative and is based on analyst forecasts [3].

The Securities and Exchange Commission has also signaled a shift in approach, launching "Project Crypto" to adapt regulatory tools for the evolving digital asset landscape. This initiative reflects an effort to balance innovation with investor protection, particularly in areas like DeFi and tokenized asset custody [5]. However, concerns remain about the risks of rapid market expansion without sufficient oversight. Experts warn that unchecked growth in the stablecoin sector could introduce systemic volatility and market abuse [6].

For now, the focus remains on whether Trump signs the executive order as expected and how regulators and financial institutions respond. The immediate reaction in the crypto market could be bullish, particularly for U.S.-based assets. But long-term success will depend on whether these policy changes lead to tangible improvements in banking access and legal clarity. If the administration’s efforts translate into a more supportive environment for crypto, it could mark a turning point for the industry in the U.S. [1].

Sources:

[1] "Trump's New Order Could Unleash Billions into Crypto" (https://cryptoticker.io/en/trumps-new-order-could-unleash-billions-into-crypto/)

[2] "White House set to unveil closely watched crypto policy..." (https://www.aol.com/news/white-house-set-unveil-closely-100450632.html)

[3] "Trump's $3.7T Stablecoin Plan Could Push BTC to $1.4M" (https://coinedition.com/trump-3-trillion-stablecoin-plan-sets-bitcoin-price-1-4-million-target/)

[4] "Trump signs stablecoin bill into law, capping string of..." (https://www.aol.com/finance/house-sends-stablecoin-bill-trumps-201658340.html)

[5] "SEC Launches “Project Crypto” to Unleash Crypto Innovation" (https://ncfacanada.org/sec-launches-project-crypto-to-unleash-crypto-innovation/)

[6] "The Great Stablecoin War" (https://www.youtube.com/watch?v=pb3KP21v7M8)