Vance Ends Operation Chokepoint 2.0 Promoting Bitcoin in U.S.

Vice President JD Vance announced the termination of Operation Chokepoint 2.0 during his speech at the Bitcoin 2025 Conference in Las Vegas on May 28, 2025. This policy, which had made it difficult for cryptocurrency companies to access banking services, was officially ended during the Trump administration. Vance emphasized that digital assets, particularly Bitcoin, would receive greater support within the U.S. financial sector moving forward.

Vance's appearance at the conference marked his first as a speaker at the event, held at the Venetian Convention Center. His speech underscored the administration's commitment to fostering innovation in the cryptocurrency space. He highlighted the replacement of Gary Gensler as SEC Chair, indicating a shift towards less aggressive regulatory measures.

Operation Chokepoint 2.0, a term coined by crypto advocates, refers to the federal regulators' actions that hindered digital asset companies from partnering with banks. Documents obtained by Coinbase through the Freedom of Information Act revealed that the FDIC had sent pause letters to banks, instructing them to cease dealings with cryptocurrencies. These policies posed significant challenges for the industry.

Vance stated that the administration would continue to remove officials who impose restrictive regulations on crypto. He asserted that integrating digital assets into traditional finance benefits the economy and confirms their permanence. The administration's stance on crypto has evolved significantly, transitioning from resistance to active promotion.

Vance expressed support for legislative proposals aimed at clarifying regulations for the cryptocurrency industry. He hoped that the GENIUS Act, a bill focused on stablecoins, would advance in Congress. Vance emphasized that the availability of stablecoins is crucial for maintaining the dominance of the U.S. dollar globally. He assured the audience that President Donald Trump would sign the bill upon its arrival at his desk.

The Vice President also proposed the establishment of a Strategic Bitcoin Reserve to position the United States as a leader in the cryptocurrency industry. This move is part of a broader geopolitical strategy to outpace competitors like China. Vance clarified that Bitcoin does not compete with the dollar but rather enhances the nation's economic development.

Administration officials are closely monitoring a bill that would regulate the $3 trillion crypto industry. Vance warned that without clear regulations, the industry might relocate to regions with more favorable rules. He urged Congress to focus on legislation that promotes innovation and maintains the U.S.'s competitive edge.

Senator Cynthia Lummis announced that the Senate would discuss the BITCOIN Act the following week, further supporting President Biden’s cryptocurrency policies. The act aims to facilitate Bitcoin's integration into the financial system.

Vance discussed the intersection of AI and Bitcoin, encouraging the crypto community to engage in AI discussions to maintain technological balance. He noted that Bitcoin's future is intertwined with advancements in AI, and the U.S. should lead in both areas.

Vance's speech highlighted the administration's shift towards promoting crypto, acknowledging the industry's influence on recent election outcomes. He credited the support from companies like Coinbase and Gemini for this change and called for continued political engagement to drive progress.

Despite ongoing policies from the Federal Reserve that suggest Operation Chokepoint 2.0 is still in effect, the administration's push for regulatory reform and Bitcoin's mainstream adoption were central themes at the event. Industry experts, including Caitlin Long of Custodia Bank, noted the significance of these developments.