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Trump to Reverse Biden's Crypto Banking Restrictions, Affecting Fed Policies

Coin WorldMonday, Mar 10, 2025 3:42 pm ET
1min read

President Donald Trump is set to sign an executive order aimed at reversing the Biden administration's policies that have made it challenging for cryptocurrency companies to access banking services. This move is part of a broader effort to support the digital assets industry, which has faced regulatory hurdles under the current administration.

The upcoming executive order is expected to explicitly roll back the rules and regulatory initiatives associated with "Operation Chokepoint 2.0," a policy allegedly implemented by the Biden administration to deny banking services to crypto companies and their executives. This initiative, coined by Castle Island Ventures partner nic Carter, draws parallels to the Obama-era "Operation Choke Point," which targeted payday lenders and firearm dealers.

Bo Hines, the Executive Director of the Presidential Working Group on Digital Assets, confirmed the impending executive order but declined to provide further details. He emphasized the Trump administration's commitment to ending all practices related to Operation Chokepoint 2.0.

While the specifics of Trump's executive order are still being finalized, it is anticipated to impact Federal Reserve policies regarding master accounts. These accounts, held by all federally chartered banks, enable direct payments with and access to the Fed, which is crucial for banks to serve customers nationwide. During the Biden administration, the Fed refused to grant master accounts to crypto-focused banks like Custodia, hindering their growth.

Allowing crypto banks to access the Fed’s services would be a significant development for the digital assets industry. However, Federal Reserve policies are typically independent of the White House, as the central bank's decisions do not require approval from the executive or legislative branches of government.

The Trump administration has been swiftly working to achieve policy goals outside the crypto arena, some of which have already faced legal challenges in federal courts. Senior White House officials are planning to meet to evaluate potential legal hurdles regarding the latest crypto order before presenting it to President Trump for signature.

The order may also extend beyond banking. It is likely to include directives stating that stablecoins, crypto assets designed to maintain a steady price and generally pegged to the U.S. dollar, should not be considered securities.

If Trump signs this executive order, it will be the third crypto-related order he has issued since returning to office. The first, signed on January 23, established a Presidential Working Group on Digital Asset Markets featuring numerous

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greyenlightenment
03/10
Trump's move could pump crypto, but risks are real.
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SojournerHope22
03/10
Trump's crypto moves could be game-changer. Fed access for crypto banks would be a big W. 🚀
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LoinsSinOfPride
03/10
Regulatory rollercoaster—hodl tight, fam 🚀
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ken119
03/10

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jvdr999
03/10
@ken119 I had a chance to invest in crypto last year but hesitated. Now I'm just watching as prices soar. FOMO is real.
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Dosimetry4Ever
03/10
@ken119 How long have you been working with Mrs. Elizabeth Towles? What's your strategy for making those gains?
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Electrical_Green_258
03/10
Stablecoin sec regs could shift market dynamics big time.
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thelastsubject123
03/10
Stablecoins as securities? Fed policies getting dicey. Gotta watch those regulatory shifts, folks.
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mav101000
03/10
Holding $COIN, betting on crypto banking freedom.
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SuperRedHulk1
03/10
Crypto market's on edge with Trump's order. Legal hurdles ahead? Maybe, but potential gains are tempting.
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RamBamBooey
03/10
Biden's Operation Chokepoint 2.0 was like digital asset suffocation. Trump's order might just be the breath of fresh air crypto needs.
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BeefMasters1
03/10
@RamBamBooey Yessir
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vdeventa
03/10
Fed policies might change, but implementation is key.
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acg7
03/10
@vdeventa True, implementation can be tricky.
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stoked_7
03/10
Fed policies might shift, but crypto's volatile. Diversify with $AAPL, then dip toes in crypto. Play safe, stay hedged.
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NoAd7400
03/10
@stoked_7 How long you planning to hold $AAPL? Any specific entry/exit points in mind?
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THEPR0P0TAT0
03/10
@stoked_7 I got $AAPL, no regrets. Holding long, diversifying with crypto slowly. Works for me.
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