Trump Claims End to Biden's Crypto Crackdown, Promises Clear Regulations

Donald Trump recently made a significant announcement at a summit, claiming that his administration had successfully terminated the Biden administration's Operation Choke Point 2.0. This operation, often referred to as a "war on crypto," was aimed at restricting access to financial services for certain industries, including cryptocurrency. Trump's statement underscores his administration's commitment to fostering innovation and technological advancement, particularly in the realm of cryptocurrency.

Trump emphasized that his policies have allowed American innovators to lead in new technological frontiers. By ending Operation Choke Point 2.0, his administration has removed barriers that hindered the growth and development of the cryptocurrency industry. This move is seen as a significant step towards promoting a more open and innovative financial landscape.

The termination of Operation Choke Point 2.0 is part of a broader effort by the Trump administration to reverse policies implemented by the Biden administration. According to Trump, more than a dozen executive actions and orders taken by the Biden administration have been reversed, including those related to Operation Choke Point 2.0. This reversal is seen as a clear indication of the Trump administration's stance on promoting innovation and technological progress.

Trump's announcement at the summit further solidified his commitment to the cryptocurrency industry. He pledged to implement clear-cut regulations that would support the growth of the industry while ensuring compliance with financial regulations. This move is expected to provide a more stable and predictable environment for cryptocurrency businesses, encouraging further investment and innovation.

During his tenure, crypto experts complained that the country’s financial regulators and banks had it in for them. They argued that banks especially imposed lengthy onboarding processes, rejected smaller companies’ applications, or disengaged from the crypto industry entirely. Trump stated that he ended the unfair war on crypto and empowered American innovators to push boundaries and lead the world into the future.

He also appreciated that some acknowledge him as the first crypto president, calling it a “big honor.” Additionally, he asserted that he created the first presidential working group to discuss digital assets and named a new pro-innovation Securities and Exchange chair. He also said that he helped to establish the first Bitcoin strategic reserve and digital asset stockpile.

Moving forward, he claimed he wanted to create more dollar-backed stablecoins and set up more regulations to allow the country to lead the future of crypto and Bitcoin. After his remarks, Coinbase CEO and Circle CEO discussed their firms’ evolution and the broader crypto space, agreeing that digital currencies are on track to serve a more significant role on a global scale.

In March, Trump signed an executive order to establish a Bitcoin reserve and digital asset stockpile. However, some crypto enthusiasts did not take too kindly to the news, bashing Trump’s administration for playing it safe. Some even raised concerns about the process’s transparency, despite the call for a full accounting of the federal government’s existing crypto reserves, which were estimated at around 200,000 Bitcoin.

Charles Edwards of the Capriole Fund, a Bitcoin and digital assets hedge fund, even argued that with no active crypto purchases, the reserve is just a “fancy title for Bitcoin holdings that already existed with the government.” Around the same time, Jason Yanowitz, Co-Founder of crypto firm, shared his view, seemingly supporting the BTC reserve but taking issue with the broader asset mix, claiming the plan was illogical and set a terrible precedent.

He also hinted that without clear regulations, the administration could disrupt crypto markets and fuel investors’ loss of confidence. Per Trump’s executive order, the Treasury and Commerce secretary should develop budget-neutral ways to acquire BTC. The stablecoin bill, is set to go through a procedural vote after lawmakers approved the bill. Moreover, after two key committees advanced the market structure bill, may soon be up for a full floor vote.