In a Bold Move, President Donald Trump Set to Sign Executive Order Targeting Crypto Industry
In a latest development, President Donald Trump is gearing up to sign an executive order that takes aim at Biden administration policies that have posed obstacles for cryptocurrency companies in accessing banking services.
The executive order is anticipated to focus on reversing the effects of “Operation Chokepoint 2.0,” a set of regulations that have been criticized for making it challenging for crypto firms to secure banking services. Trump’s directive is geared towards easing these restrictions and providing support to the burgeoning crypto sector.
Bo Hines, the Executive Director of the White House’s Presidential Working Group on Digital Assets, has confirmed that significant administrative action is on the horizon, although specific details have not been disclosed. Hines has hinted at an imminent announcement for the industry.
Hines has underscored the Trump administration’s commitment to putting an end to practices associated with “Operation Chokepoint 2.0,” a term coined by Nic Carter to describe initiatives reminiscent of the Obama-era Operation Choke Point, which targeted payday lenders and firearms dealers.
While the specifics of Trump’s forthcoming executive order are still being ironed out, insider sources have indicated that it may have implications for Federal Reserve policies concerning master accounts. These accounts, maintained by federally chartered banks, play a crucial role in facilitating direct payments and accessing the Fed’s array of services. The Biden administration’s refusal to grant master accounts to crypto-centric banks like Custodia has impeded their progress. If the policy evolves to enable crypto banks to tap into the Fed, it could represent a significant breakthrough for the digital assets sector.
Despite the Federal Reserve’s autonomy from the White House, the Trump administration is forging ahead with its crypto-focused order, despite potential legal obstacles. Reports suggest that senior White House officials are slated to convene on Thursday to evaluate potential challenges before presenting the executive order to Trump for approval.
Although a White House spokesperson has refuted claims of a scheduled meeting, the spokesperson has acknowledged that efforts are underway to reverse the effects of Operation Chokepoint 2.0. The competition to reshape crypto regulations is intensifying, and the industry is eagerly anticipating the next steps.
The impending executive order may extend beyond banking matters, with sources hinting that it could encompass a directive stipulating that stablecoins, which are designed to maintain a fixed value often pegged to the U.S. dollar, should not be classified as securities.
If Trump proceeds with signing this order, it would mark his third executive action related to cryptocurrencies since reassuming office. The initial directive, signed on January 23, established the Presidential Working Group on Digital Asset Markets. The subsequent order, inked last week, mandated the establishment of a Bitcoin reserve and a separate reserve for other digital assets within the U.S. government.