Trump Set to Sign Executive Order Reversing Biden’s Crypto Banking Restrictions

The post Trump Set to Sign Executive Order Reversing Biden’s Crypto Banking Restrictions appeared first on Coinpedia Fintech News

In a latest move, President Donald Trump is all set to sign an executive order targeting Biden administration policies that have made it hard for crypto companies to access banking services.

The order is expected to target policies under “Operation Chokepoint 2.0,” which critics say made it harder for crypto companies to access banking services. Trump’s move seeks to roll back these restrictions and support the crypto industry.

Bo Hines, Executive Director of the White House’s Presidential Working Group on Digital Assets, confirmed that administrative action is coming but didn’t provide details. He mentioned that the industry can expect something in soon. 

Hines also emphasized that the Trump administration aims to end practices linked to “Operation Chokepoint 2.0,” a term coined by Nic Carter, which refers to efforts similar to the Obama-era Operation Choke Point that targeted payday lenders and gun dealers.

While details of Trump’s executive order are still being finalized, one source told Decrypt that it could impact Federal Reserve policies on master accounts. These accounts, held by federally chartered banks, are essential for making direct payments and accessing the Fed’s services. Under the Biden administration, the Fed denied master accounts to crypto-focused banks like Custodia, hindering their growth. If the policy changes, allowing crypto banks to access the Fed, it would be a major boost for the digital assets industry.

While the Federal Reserve operates independently from the White House, the Trump administration is pushing forward with its crypto order, despite potential legal hurdles. Sources note that senior White House officials are set to meet Thursday to assess possible challenges before putting the order on Trump’s desk. 

However, a White House official denied any such meeting is scheduled but confirmed that efforts to roll back Operation Chokepoint 2.0 are already in motion. The race to reshape crypto policy is heating up, and all eyes are on what comes next.

The upcoming executive order could extend beyond banking, with one source telling Decrypt that it might include a directive stating that stablecoins, which are designed to maintain a stable value and are typically pegged to the U.S. dollar, should not be classified as securities.

If Trump signs this order, it would be his third crypto-related executive action since returning to office. The first, signed on January 23, created a Presidential Working Group on Digital Asset Markets. The second, signed last week, ordered the establishment of a U.S. government Bitcoin reserve and a separate stockpile for other digital assets.