President Donald Trump is preparing to sign an executive order aimed at reversing banking restrictions on cryptocurrency firms imposed during the Biden administration. The order is expected to address regulatory policies that limited crypto companies’ access to banking services, according to sources familiar with the matter.
Donald Trump Executive Order on Crypto Banking Barriers
The upcoming Donald Trump executive order is expected to roll back rules linked to “Operation Chokepoint 2.0,” a term used to describe efforts that allegedly pressured banks to deny services to crypto-related businesses.
The initiative, widely discussed by industry leaders, suggested that the previous administration discouraged financial institutions from working with the crypto sector.
White House officials confirmed that steps are being taken to remove these restrictions. Bo Hines, Executive Director of the Presidential Working Group on Digital Assets, stated, “I think that the industry can expect something in short order there.” However, specific details regarding the content of the executive order have not yet been disclosed.
Potential Changes to Federal Reserve Policies
The Donald Trump executive order may also target Federal Reserve policies that restricted crypto-focused banks from obtaining master accounts. These accounts allow banks to transact directly with the Federal Reserve and are essential for operating nationwide. During the Biden administration, banks like Custodia were denied master accounts, limiting their ability to offer financial services to crypto firms.
Despite increasing calls for change, the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) have not yet rescinded any anti-crypto guidance. Last month, Federal Reserve Chairman Jerome Powell acknowledged concerns over crypto debanking, stating that he was “struck” by the growing number of cases and that the Fed would take a “fresh look” at the issue.
Custodia Bank CEO Caitlin Long has criticized the Fed and FDIC for their approach to crypto banking, stating that they were “far more detrimental to crypto banking” than the Office of the Comptroller of the Currency (OCC), which recently rescinded its restrictive crypto banking guidance.
Elizabeth Warren Signals Support for Crypto Banking Access
Senator Elizabeth Warren, has also expressed a willingness to work with the Trump administration to address debanking issues.
During a recent Senate Banking Committee hearing, Warren stated, “Debanking is a real problem. This shouldn’t be happening, and we need to fix it.”
Her position represents a shift in her approach to cryptocurrency regulation. While she has previously advocated for stricter oversight, Warren now appears to support ensuring that banks do not deny services to crypto firms without clear justification.
Trump’s Continued Focus on Cryptocurrency Policy
This Donald Trump executive order would be the third related to cryptocurrency since Trump returned to office. The first order, signed in January, established the Presidential Working Group on Digital Asset Markets. The second, signed last week, directed the creation of a U.S. government strategic Bitcoin reserve and a separate digital asset stockpile.
Reports suggest that the upcoming order may include provisions related to stablecoins, stating that they should not be classified as securities. If signed, this order could introduce major regulatory changes affecting the cryptocurrency industry, particularly in the banking sector.
A senior White House official stated that legal considerations are being reviewed before the order is finalized. While no specific date has been confirmed, sources suggest the signing could take place within the week.
The post Donald Trump To Sign Executive Order to End Crypto Banking Restrictions; Report appeared first on CoinGape.
