U.S. President Donald Trump is preparing to sign an executive order requiring banking regulators to investigate the mass closure of accounts linked to crypto companies and individuals with conservative views, according to The Wall Street Journal, citing a draft document. The order could be signed as early as this week, although the White House has left room for changes or delays.
If enacted, the order would compel supervisory agencies to examine whether banks violated fair lending laws, consumer protection regulations, or antitrust rules when denying services to specific clients.
Review of Bank and Regulator Actions
According to sources, the draft order demands that banking regulators eliminate any internal policies that may have enabled mass de-banking practices. It also includes a directive to reassess the U.S. Small Business Administration’s loan guarantee policies to prevent possible discrimination.
WSJ reports that if violations are identified, the findings could be referred to the U.S. Department of Justice for further legal action. The draft specifically calls for an investigation into whether banks denied services for political reasons, including their cooperation with law enforcement investigations into the January 6, 2021, Capitol events.
Accusations Against the Biden Administration
Members of the crypto industry have repeatedly accused President Joe Biden’s administration of intentionally pressuring regulators to restrict the sector’s access to the banking system. According to this narrative, the "purge" began in late 2022 following the collapse of the FTX exchange.
Previously, investor and entrepreneur Kevin O’Leary warned of a growing confrontation between traditional currency markets and the crypto industry. He stated that the forex market had lobbied against the stablecoin legislation (GENIUS Act), which was eventually passed, out of fear of losing profits.
Operation ‘Choke Point 2.0’ and Political Implications
In 2023, venture investor Nic Carter coined the term “Operation Choke Point 2.0,” referencing a 2010s government campaign against payday lenders. According to Carter, the current situation mirrors that logic: limiting banking access for entire sectors and groups of clients.
Trump supporters argue that the pressure has affected not only crypto startups but also various organizations and individuals with conservative beliefs. Banks, however, refer to the practice as “derisking,” emphasizing their legal right to close accounts based on reputational or compliance considerations.
Also Read:
- The White House Unveils First Crypto Regulation Report
- 2025 Global Crypto Regulations: How Different Countries are Approaching Cryptocurrency
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