President Trump Takes Stand Against Unfair Banking Practices Targeting Cryptocurrency Sector
United States President Donald Trump has made a significant move to address banking practices that have been negatively impacting the cryptocurrency sector. In a new executive order signed today, President Trump aims to put an end to what he deems as “unfair” practices by federal regulators against financial institutions that work with the cryptocurrency industry.
The White House issued a memo stating, “The digital assets industry has been unfairly targeted by banking disruptions. These practices not only erode public trust in the banking system and regulators but also pose a threat to livelihoods, freeze wages, and impose significant economic burdens on honest Americans.”
One of the key changes brought about by the executive order is the removal of the concept of reputational risk from the oversight criteria used by the US Federal Reserve in regulating banks. This concept, which pertains to the potential loss of customers or revenue due to negative publicity or public perception, has been a point of contention for crypto companies who feel unfairly targeted by regulators.
The decision by the Trump administration comes in response to mounting complaints from cryptocurrency companies and individuals who have had their bank accounts closed without valid reasons. By fulfilling his promise to address this issue, President Trump has effectively put an end to what has been referred to as “Operation Choke Point 2.0” within the industry.
The term “Operation Choke Point 2.0” was coined in 2023 by Nic Carter, co-founder of Castle Island Ventures, drawing parallels to the Obama-era initiative known as “Operation Choke Point” from 2013. The original operation aimed to limit access to banking services for sectors deemed high risk for fraud and money laundering.
It is important to note that the information provided in this article is not intended as investment advice.