Trump’s EO Bars Crypto Debanking, Ends Operation Chokepoint 2.0
President Donald Trump’s “Fair Banking for All Americans” executive order bars banks from crypto debanking or denying services based solely on reputational risk. It officially ends the Biden-era Operation Chokepoint 2.0 policy. Banks must not de-risk or close accounts without valid cause. The White House will review past complaints and supervisory records to identify instances of crypto debanking linked to protected beliefs, potentially offering remedies for affected firms.
Industry voices welcomed the directive as a safeguard against undue exclusion. By removing barriers to banking partnerships, the order aims to boost liquidity and expand USD on-ramps. Traders should monitor banks’ compliance and the rollout of new services for market signals.
Bullish
The executive order curbs crypto debanking and removes reputational risk barriers, which should improve banks’ willingness to offer services and enhance liquidity. In the short term, increased USD on-ramps and restored institutional trust may drive higher trading volumes and positive price momentum. Over the long term, clearer regulatory guidance reduces uncertainty, encouraging more bank partnerships and institutional adoption. However, the actual impact depends on banks’ compliance and the speed of new service launches. Overall, the directive’s support for crypto services is likely to be bullish for the market.