Trump Signs Executive Order to End Banking Discrimination Against Crypto Industry

President Donald Trump has taken a decisive step to protect the cryptocurrency sector from regulatory overreach. An executive order signed on August 7 prohibits federal regulators from using "reputational risk" as a pretext to pressure banks against servicing legal crypto businesses. The move addresses widespread complaints of abrupt account closures and financial access denials faced by compliant firms.

The order directly counters what industry participants call "Operation Choke Point 2.0"—an unofficial but systematic campaign of regulatory coercion. While not an official program, this pattern of supervisory actions has mirrored tactics from a controversial Obama-era initiative that targeted industries like firearms and payday lending. The modern iteration, however, has disproportionately focused on digital asset companies.

Since early 2023, multiple crypto firms have reported unexplained banking restrictions, often based on vague risk concerns rather than concrete compliance failures. The executive order aims to level the playing field for an industry that has faced regulatory headwinds despite operating within legal boundaries.