Trump Set to Sign Executive Order Reversing Biden’s Crypto Banking Restrictions
In the latest move, President Donald Trump will sign an executive order against Biden administration policies, which makes it difficult for crypto companies to access banking services.
The order is expected to target policies under “Chokepoint 2.0 Operations”, which critics say makes it harder for crypto companies to access banking services. Trump’s move attempts to lift these restrictions and support the cryptocurrency industry.
Bo Hines, executive director of the White House Presidential Digital Assets Presidential Working Group, confirmed the executive action is coming, but did not provide details. He mentioned that the industry will be looking forward to something soon.
Hines also stressed that the Trump administration aims to end practices related to the “Cokepoint 2.0” action, the term coined by Nic Carter, which refers to similar to the Obama-era-era-era-era-Operion Choper Choper Point, an effort targeting payday lenders and gun dealers.
Although details of Trump’s executive order are still being completed, a source told Decryption that this could affect Fed policy on the main account. These accounts are held by federal chartered banks and are essential for direct payments and access to the Fed’s services. Under the Biden administration, the Fed has denied master accounts of cryptocurrency banks such as Custodia, hindering their growth. If policies change, allowing crypto banks to access the Fed will be a major driving force for the digital asset industry.
Although the Fed operates independently of the White House, the Trump administration is pushing for its crypto order despite possible legal obstacles. Sources noted that senior White House officials will meet on Thursday to assess possible challenges before ordering at Trump’s desk.
However, a White House official denied plans for any such meeting but confirmed efforts to return Concokepoint 2.0 were already on the move. The race to reshape crypto policies is heating up and everyone is paying attention to what’s coming.
The upcoming executive order could go beyond banking, one of the sources told Decrypt that it could include a directive that a stable stablecoin is designed to maintain stable value and should not be nailed to a dollar and should not be classified as securities.
If Trump signs the order, it will be his third executive action related to cryptocurrency since returning to office. The first signing was signed on January 23, creating a presidential working group on the digital asset market. The second order signed last week established separate inventory of U.S. government bitcoin reserves and other digital assets.
