The US digital asset industry is poised for a significant shift as President Donald Trump moves to address one of its most persistent challenges: access to banking services. A new executive order, currently in the works, aims to prevent banks from denying services to crypto firms based solely on their industry or perceived political leanings. This initiative could mark the end of what many in the sector have called “Operation Chokepoint 2.0,” a term used to describe alleged efforts by previous administrations to restrict banking access for crypto businesses.
Why This Matters for Crypto Firms
For years, digital asset companies have struggled to secure stable banking relationships. The collapse of crypto-friendly banks like Silicon Valley Bank, Silvergate, and Signature Bank in early 2023 only deepened these challenges, leaving many firms without essential financial infrastructure. The new executive order, led by Trump’s Domestic Policy Council, is expected to restore fair access to banking for blockchain and crypto businesses, potentially boosting industry stability and attracting more institutional investors.
Key Features of the Executive Order
• Ban on Industry-Based Discrimination: Banks will be barred from refusing services to crypto firms simply because of their sector or political associations.
• Regulatory Clarity: The order emphasizes technology-neutral regulations, aiming to provide clearer rules for digital asset businesses.
• Protection of Blockchain Activities: Fundamental blockchain operations—such as self-custody, mining, and permissionless transactions—are explicitly protected.
• Review of Existing Regulations: Federal agencies are required to review and recommend updates to digital asset regulations within 60 days.
• No Central Bank Digital Currency (CBDC): The order prohibits the establishment or use of a US CBDC, while supporting USD-backed stablecoins.
Political and Legal Implications
The move has garnered support from both sides of the political aisle, with even Democratic Senator Elizabeth Warren calling for investigations into alleged banking discrimination. However, the proposal is likely to spark debates over the federal government’s authority to dictate private banking practices. While Federal Reserve Chair Jerome Powell has stated that banks are free to serve crypto firms as long as they comply with regulations, the executive order could provide a more definitive framework for the industry.
What’s Next for Crypto Banking?
While the Trump administration’s pro-crypto stance and regulatory rollbacks are seen as positive steps, challenges remain. Crypto firms continue to face uncertainty, and the full impact of the executive order will depend on its implementation and the response from the banking sector. Nevertheless, the alignment between the administration and the Federal Reserve signals a rare moment of shared direction on crypto policy, offering cautious optimism for the future of digital asset banking in the US.
