Senate To Go On the Offensive Against Operation Chokepoint 2.0

Key Takeaways

• Senate Banking Committee lists three witnesses to testify on debanking practices.
• The Biden administration allegedly pressured banks to cut off crypto firms.
• Trump moves swiftly to reverse policies and support banking access for crypto companies.

The Senate Banking Committee is set to investigate the systematic debanking of cryptocurrency companies—an effort widely referred to as “Operation Chokepoint 2.0.”

Under the Biden administration, crypto firms saw their banking access severely restricted.

While officials denied such coordinated efforts, redacted documents suggest regulators made over a dozen calls urging banks to sever ties with crypto businesses.

Now, with Donald Trump back in office, his administration is moving quickly to address the issue and roll back restrictive policies.

Senate to Probe Operation Chokepoint 2.0

Donald Trump has wasted no time making good on his campaign promises regarding crypto. Among them is investigating the debanking practices that targeted the industry.

The Senate Banking Committee, led by Republican Sen. Tim Scott, will hold a hearing on Feb. 5 to examine the issue.

Scott emphasized the importance of exposing the extent of debanking under the previous administration.

“The first step is bringing it to the public, so the public understands that, yes, all the concerns you heard during the campaign weren’t just rhetoric—they were real,” Scott told reporters.

In addition to the Senate Banking Committee hearing, the House Financial Services Committee, chaired by Rep. French Hill, will hold its own session on Feb. 6.

The issue gained renewed attention late last year when venture capitalist Marc Andreessen claimed on The Joe Rogan Experience podcast that more than two dozen crypto and tech entrepreneurs had been debanked as part of a regulatory crackdown.

Who Are the Witnesses?

According to Fox Business reporter Eleanor Terret t, the Senate Banking Committee has lined up three key witnesses for next week’s hearing:

• Nathan McCauley, CEO of Anchorage, a crypto platform that faced debanking due to its industry ties.
• Evan Hafer, founder of Black Rifle Coffee, who believes his conservative views led to his business being debanked.
• A representative from Davis Wright Tremaine LLP, who will testify about legal cases involving clients who were debanked.

Ripple CEO Brad Garlinghouse has also spoken out about being a target of debanking, while Coinbase CFO Paul Grewal recently claimed the company obtained unredacted documents proving a coordinated effort to suppress crypto-related banking services.

Regulatory Overreach or Justified Enforcement?

Under the Bank Secrecy Act (BSA) of 1970, banks can deny services to businesses suspected of illicit activity.

However, the law does not permit regulators to systematically target an entire industry without cause.

In a recent interview, JPMorgan CEO Jamie Dimon acknowledged the issue but defended banks’ cautious approach:

“We’re not allowed to tell you why we debanked you. If we think there’s a risk of fraud or money laundering, and we don’t debank you, we could get in big trouble. We’ve been complaining about this for years. We need to fix it.”

Sen. Scott emphasized that while the BSA is an important tool for combating financial crime, it cannot be used as a blanket excuse for regulators to sever ties with industries they disfavor.

What Comes Next?

The Senate Banking Committee is expected to take legislative action to prevent political interference in banking.

Trump has vowed to dismantle barriers preventing banks from working with crypto firms, and his administration is already making moves.

One of the first regulatory rollbacks came from the SEC, which recently rescinded SAB 121, a controversial Biden-era accounting rule that restricted banks from holding crypto assets.

With these early actions, the Trump administration is signaling a sharp departure from its predecessor’s approach—and a more favorable environment for crypto firms seeking banking access.