Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert
Zero fees, no slippage
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
Trump to order probe of crypto and political debanking claims: WSJ

Trump to order probe of crypto and political debanking claims: WSJ

CointimeCointime2025/08/05 12:35
By:Cointime

US President Donald Trump is reportedly planning to sign an executive order directing banking regulators to investigate claims of debanking made by the crypto sector and conservatives.

Bank regulators would be directed to probe whether any financial institutions violated antitrust, consumer financial protection or fair lending practice laws, according to a draft of the executive order seen and  reported  by The Wall Street Journal on Monday.

Those found violating the laws could face fines or other legal action. Trump may sign the order this week, reportedly, but the White House could delay or change the plan.

Crypto industry executives have long alleged that the Biden administration  conspired to cut crypto off  from the financial system by using regulators to pressure banks into shirking clients involved in digital assets.

Executive order to demand regulatory overhaul

The reported draft order directs bank regulators to scrap any of their policies that may have contributed to banks dropping some customers, such as crypto firms.

It also directs the US government’s Small Business Administration to review banking practices that guarantee the loans made by the agency to small businesses.

The order asks regulators to refer some of the potential violations to the attorney general for the Department of Justice to follow up.

The Journal reported in June that the White House was  planning for Trump  to sign a similar order aiming at stopping banks from cutting off services to industries such as crypto.

“Operation Choke Point 2.0” claims

Crypto executives have claimed that former President Joe Biden began to cut off their industry from banking in late 2022 after the collapse of FTX, with the crypto exchange being revealed as a massive fraud.

Coinbase chief legal officer Paul Grewal  testified at a Congressional hearing  in February that the Biden-era Federal Deposit Insurance Corporation (FDIC) “bludgeoned the banks” with examinations and questions around crypto and stablecoins until they “relented under the pressure.”

A Coinbase-supported Freedom of Information Act lawsuit against the FDIC showed the agency asked certain financial institutions  to pause crypto banking activities , which Grewal said showed the industry’s claim “wasn’t just some crypto conspiracy theory.”

Trump to order probe of crypto and political debanking claims: WSJ image 0   A redacted letter the FDIC sent in 2022 to a company asking it to pause its crypto activities. Source: FDIC

Crypto venture capitalist Nic Carter coined the term “Operation Choke Point 2.0” in February 2023 to describe the perceived debanking phenomenon, taking inspiration from the Justice Department’s “Operation Choke Point” against banks and payday lenders in the 2010s.

Trump’s order to also target alleged political debanking

The order will also reportedly probe the role of banks in supposedly denying or cancelling services to political conservatives.

The draft didn’t name any specific banks, but it did criticize the role of financial institutions that are said to have helped federal investigators with probing the Jan. 6, 2021, riots at the US Capitol, the Journal reported.

Conservatives have also claimed that banks have denied them services based on political beliefs.

The banking industry calls the practice “derisking,” and financial institutions have broad discretion to close accounts, whether the account holder poses a legal, financial or reputational risk to the firm.

The Federal Reserve said in June that it would  stop examining for reputational risk  following similar moves made by the Office of the Comptroller of the Currency and the FDIC.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!