Key Takeaways
- Donald Trump is expected to sign an executive order preventing banks from denying services to crypto firms.
- The Federal Reserve has dropped “reputational risk” from bank exams, a move welcomed by the crypto industry.
- The crackdown known as Operation Chokepoint 2.0 may finally end under the new administration.
According to The Wall Street Journal, U.S. President Donald Trump is preparing to sign an executive order that would prevent banks from refusing services to crypto companies based on their industry or political associations.
The move comes amid growing GOP pressure on major banks accused of politically motivated discrimination—an echo of what the crypto world has come to call Operation Chokepoint 2.0.
Although the Biden era is over, banks appear to be rolling out Operation Chokepoint 3.0 — slapping on outrageous fees to access financial data or move money to crypto and fintech apps, and more worryingly, outright blocking them.
Operation Chokepoint 3.0 in the Making
While President Trump is pushing to make the U.S. a global hub for crypto, major banks seem to be moving in the opposite direction, despite their public interest in the space.
Recent reports suggest that banks are quietly making it harder for crypto firms to access basic banking services, even after Trump’s executive order rolled back regulatory barriers imposed by previous administrations.
Many are now calling this quiet resistance Operation Chokepoint 3.0.
Unlike earlier crackdowns led by regulators, this time it’s the banks themselves taking action — hiking fees, limiting access, and even blocking connections to fintech and crypto apps.
JPMorgan Chase, for instance, recently started charging steep fees to fintech companies just to access customer bank data.
While officially labeled as a move toward monetization, critics argue it’s a strategic attempt to squeeze out competition.
In response, the Trump administration could sign a new executive order barring banks from discriminating against crypto and fintech businesses.
Major Banks Scramble as Trump Team Drafts Order
According to WSJ, the potential order would bar banks from cutting off customers due to their political views or the industries they work in, such as crypto.
It would also empower regulators to penalize financial institutions that engage in such practices.
Behind the scenes, banks like JPMorgan, Citibank, and Bank of America have already met with Republican state officials to address growing concerns about banking discrimination.
Adding weight to the effort, the Federal Reserve recently eliminated the “reputational risk” criterion from bank examination protocols.
This change, while technical, could allow banks to resume or expand services to digital asset firms, many of which were cut off under the previous administration.
Crypto Industry Sees Relief From Operation Chokepoint 2.0
The Biden-era crackdown—dubbed Operation Chokepoint 2.0 by industry insiders—led to a wave of “debanking” across the U.S. crypto sector.
While there was never a formal policy document, internal communications and testimonies revealed an informal but coordinated effort to push crypto firms out of the traditional banking system.
High-profile industry leaders like Ripple’s Brad Garlinghouse, Kraken’s Jesse Powell, and Eric Trump have all publicly said they were denied banking services due to their crypto ties or political affiliations.
Since returning to the office, Trump has promised to reverse the damage, pledging to end Operation Chokepoint 2.0 and make the U.S. a global crypto hub.
Already, his administration has begun rolling back restrictive regulations—targeting SEC rules like SAB 121 and new DeFi reporting mandates—and is now looking to further loosen capital rules to attract more financial innovation.
Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
Beyond his professional pursuits, Prashant is an avid music enthusiast, often exploring diverse genres to unwind. A sports lover, he has a particular passion for cricket and frequently engages in discussions about the game. His multifaceted interests and sharp journalistic instincts make him a valuable contributor to CCN, where he continues shaping the crypto landscape's narrative.
