President Trump Set To Sign New Executive Order To End Debanking Of Crypto Companies
Since taking office on January 20, President Donald Trump has already issued two crypto executive orders. 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 Strategic Bitcoin Reserve and a digital asset stockpile.
The president may be preparing to sign a third order expected to roll back anti-crypto banking rules of the Harris-Biden administration.
Pushing Fed To Open Its Doors To Crypto Companies
According to sources familiar with the matter, the expected executive order will explicitly abolish the rules and regulatory initiatives linked to the Operation Chokepoint 2.0, an orchestrated effort by the Biden administration to allegedly deny crypto and tech founders banking services.
The implosion of crypto-friendly banks in early 2023 triggered first allegations of Operation Chokepoint 2.0. Pundits, including venture capitalist Nic Carter, described it as a government initiative to pressure banks into severing ties with crypto-related firms secretly.
Notably, President Trump recently told a room full of crypto industry leaders and government officials at the White House Crypto Summit that he is ending Operation Chokepoint 2.0.
According to the latest reports, the executive order would mandate crypto-friendly banks to be granted Federal Reserve master accounts. These accounts are key to banks ability to efficiently serve clients nationwide as they provide access to Fed services such as settlement and electronic transfers.
During the Biden regime, the Fed relentlessly declined to grant master accounts to crypto-focused banks like Custodia, hindering their expansion. Reversing Operation Chokepoint 2.0 and allowing crypto banks to access the Feds services would mark a huge development for the crypto industry.
Meanwhile, the anticipated crypto executive order could extend beyond debanking to include directives stating that stablecoins should not be classed as securities.
Both provisions could greatly boost crypto mass adoption by making it not burdensome for digital asset exchanges to offer users familiar on-ramp and off-ramp services.
Text source: ZyCrypto
