President Trump Set to Sign Order Targeting Banks De-Banking Crypto Users

The executive order, reported on August 8 by PANews and attributed to The Block, removes 'reputational risk' as a regulatory tool against banks serving crypto, earning GOP support.

Summary

President Trump signed an executive order, as reported on August 8 by PANews, that bars federal regulators from using 'reputational risk' to justify de-banking crypto firms. The move addresses complaints of unfair bank closures and follows his pledge to end Operation Choke Point 2.0, with backing from lawmakers like House Financial Services Committee Chairwoman French Hill and Senator Cynthia Lummis.

Terms & Concepts
  • debanking: The practice of denying or restricting banking services to individuals or organizations, often influenced by regulatory or reputational concerns.
  • Operation Choke Point 2.0: A term used by the crypto industry to describe alleged coordinated regulatory pressures that lead banks to limit services to digital asset companies.