President Donald Trump signed an executive order on Aug. 7 to halt what his administration called discriminatory banking practices against the crypto industry.

The order bars federal regulators from using “reputational risk” as justification to influence banks’ decisions about working with legal businesses.

According to the administration, the digital asset sector has been disproportionately affected by behind-the-scenes pressure from regulatory agencies, leading to abrupt account closures, payroll disruptions, and loss of financial access for law-abiding firms.

The move directly targets what critics have dubbed “Operation Choke Point 2.0,” a term used by the crypto industry to describe a coordinated campaign of informal regulatory pressure.

While not an official program, the term refers to a pattern of supervisory actions that allegedly discourage banks from servicing digital asset companies, even when those firms comply with existing laws.

The modern-day chokepoint mirrors tactics once used in a 2010s-era Department of Justice initiative, which sought to cut off banking access for industries labeled high-risk for fraud, including firearms and payday lending.

However, unlike its predecessor, the newer iteration has focused largely on crypto. Since early 2023, multiple firms have reported unexplained debanking, often following vague concerns about risk rather than concrete compliance violations.

Industry advocates and pro-crypto lawmakers have stated that the unfriendly environment created uncertainty for startups and institutional players alike, limiting growth and undermining regulatory credibility in the US.

Trump’s order codifies recent moves by the Federal Reserve, FDIC, and Office of the Comptroller of the Currency, all of which have pledged to stop evaluating banks based on reputational factors.

It also aligns with legislation under discussion in Congress, where lawmakers have pushed for stricter limits on how regulators supervise politically sensitive or emerging industries.

The order is part of a broader effort by the Trump administration to establish clearer protections for crypto companies operating within the US financial system.

The post Trump signs executive order to end banking discrimination against crypto industry appeared first on CryptoSlate.

President Donald Trump signed an executive order on Aug. 7 to halt what his administration called discriminatory banking practices against the crypto industry.

The order bars federal regulators from using “reputational risk” as justification to influence banks’ decisions about working with legal businesses.

According to the administration, the digital asset sector has been disproportionately affected by behind-the-scenes pressure from regulatory agencies, leading to abrupt account closures, payroll disruptions, and loss of financial access for law-abiding firms.

The move directly targets what critics have dubbed “Operation Choke Point 2.0,” a term used by the crypto industry to describe a coordinated campaign of informal regulatory pressure.

While not an official program, the term refers to a pattern of supervisory actions that allegedly discourage banks from servicing digital asset companies, even when those firms comply with existing laws.

The modern-day chokepoint mirrors tactics once used in a 2010s-era Department of Justice initiative, which sought to cut off banking access for industries labeled high-risk for fraud, including firearms and payday lending.

However, unlike its predecessor, the newer iteration has focused largely on crypto. Since early 2023, multiple firms have reported unexplained debanking, often following vague concerns about risk rather than concrete compliance violations.

Industry advocates and pro-crypto lawmakers have stated that the unfriendly environment created uncertainty for startups and institutional players alike, limiting growth and undermining regulatory credibility in the US.

Trump’s order codifies recent moves by the Federal Reserve, FDIC, and Office of the Comptroller of the Currency, all of which have pledged to stop evaluating banks based on reputational factors.

It also aligns with legislation under discussion in Congress, where lawmakers have pushed for stricter limits on how regulators supervise politically sensitive or emerging industries.

The order is part of a broader effort by the Trump administration to establish clearer protections for crypto companies operating within the US financial system.

The post Trump signs executive order to end banking discrimination against crypto industry appeared first on CryptoSlate.