Trump to End Anti-Crypto Banking Rules, Boost Industry Growth

President Donald Trump is set to sign a new executive order aimed at ending the debanking of crypto companies. This move comes as the third crypto-related executive order since Trump took office, following the creation of a Presidential Working Group on Digital Asset Markets and the establishment of a Strategic Bitcoin Reserve and a digital asset stockpile.

The upcoming executive order is expected to roll back anti-crypto banking rules implemented during the previous administration. Specifically, it will target the regulatory initiatives linked to “Operation Chokepoint 2.0,” an effort alleged to deny crypto and tech founders banking services. The implosion of crypto-friendly banks in early 2023 sparked allegations that this operation was a covert government initiative to pressure banks into severing ties with crypto-related firms.

President Trump recently addressed a gathering of crypto industry leaders and government officials at the White House Crypto Summit, where he announced his intention to end “Operation Chokepoint 2.0.” This announcement underscores the administration's commitment to supporting the crypto industry by ensuring that crypto-friendly banks are granted Federal Reserve master accounts. These accounts are crucial for banks to efficiently serve clients nationwide, providing access to essential Fed services such as settlement and electronic transfers.

During the previous administration, the Federal Reserve consistently declined to grant master accounts to crypto-focused banks like Custodia, significantly hindering their expansion. By reversing “Operation Chokepoint 2.0” and allowing crypto banks access to the Fed’s services, the new executive order could mark a significant development for the crypto industry. This move would facilitate the growth and adoption of digital assets by making it easier for digital asset exchanges to offer users familiar on-ramp and off-ramp services.

The anticipated executive order may also include directives stating that stablecoins should not be classified as securities. This provision could further boost the mass adoption of crypto by reducing regulatory burdens on digital asset exchanges. Overall, the new executive order represents a significant step towards creating a more favorable regulatory environment for the crypto industry, potentially fostering innovation and growth in the sector.