Trump Plans Executive Order to Protect Crypto Firms from Banking Discrimination

The Trump administration is drafting an executive order to penalize banks that allegedly discriminate against cryptocurrency firms and politically active individuals by closing their accounts. This move aims to counter what the industry calls "Operation Chokepoint 2.0"—a perceived campaign under the Biden administration to restrict crypto access to banking services.

Cryptocurrency companies have long argued that banks unjustly terminate their accounts, citing political bias or anti-crypto sentiment. Banks, however, maintain that closures are based on compliance risks, particularly anti-money laundering (AML) regulations. The tension has escalated under Biden, with crypto firms claiming stifled innovation and financial exclusion.

Trump’s proposed order positions his administration as a pro-crypto force, seeking to reverse restrictive banking practices. The measure could reshape the financial landscape for digital assets, though its enforcement and broader implications remain uncertain.