Trump Blasts Biden's Crypto Debanking Trend, Vows Policy Shift

President Donald Trump has recently criticized the ongoing debanking of crypto firms, describing it as a "very bad and very dangerous" trend. He suggested that this practice originated under President Biden’s administration and continues to hinder the U.S. crypto industry. Trump made these remarks during an appearance in the Oval Office on the 28th of June, where he was asked about the possibility of signing an executive order to address the issue.

Trump highlighted the strategic importance of embracing digital assets, suggesting that if the U.S. turned its back on crypto, rival nations would seize the advantage. He also sidestepped inquiries about whether he would distance himself from his family’s crypto-related ventures to avoid conflicts of interest in advancing crypto legislation.

The Trump and Biden administrations have fundamentally opposing approaches to crypto banking access. Under President Biden, regulators allegedly pressured banks to cut ties with digital asset firms, an effort critics dubbed “Operation Chokepoint 2.0.” This push led to widespread debanking across the crypto sector, as banks distanced themselves due to perceived reputational risks. In contrast, President Trump’s administration is actively tearing down these barriers. It has rolled back controversial policies like SAB 121, promoted anti-discrimination rules in banking, and introduced executive actions to stop banks from unfairly excluding crypto firms from financial services.

Trump has also intensified his criticism of the Federal Reserve, especially over its reluctance to lower interest rates. He revived his long-standing criticism of Federal Reserve Chair Jerome Powell—whom he originally appointed—calling him a “stubborn mule” and urging him to resign. This clash followed Powell’s earlier remarks in January, where he noted that banks could engage with crypto, provided they had strong risk controls.

These comments align with recent reports suggesting that a forthcoming executive order will prohibit banks from denying services to crypto firms purely based on their industry or assumed political affiliations. If enacted, the order could mark a pivotal shift toward restoring fair financial access and reaffirming institutional support for the growth of the crypto sector.