Trump Threatens Sanctions on Banks Over Crypto Discrimination

Trump Threatens Sanctions on Banks Over Crypto Discrimination

Donald Trump is preparing to sign a presidential decree aimed at protecting crypto companies and other entities from being excluded by banks for political reasons. The decree will instruct regulators to investigate banking practices and sanction institutions that unlawfully close accounts based on political discrimination.

Key Points

• The decree targets discriminatory banking practices against crypto companies and individuals.
• Regulators will be ordered to investigate and sanction banks violating laws such as the Equal Credit Opportunity Act.
• The initiative aims to end what is referred to as ‘Operation Choke Point 2.0’.

Trump’s Support for Crypto Companies

The U.S. President intends to prevent banks from refusing services to customers due to their political views or involvement in the crypto sector, which has frequently faced banking exclusions. The draft decree mandates regulators like the FDIC, OCC, and Federal Reserve to stop considering “reputational risk” when evaluating bank-customer relationships. Banks found guilty of discriminatory practices could face fines and disciplinary actions. This move is part of a broader political effort to ensure neutral access to financial services, meaning banks cannot exclude customers solely because they operate in crypto or hold certain political opinions.

Ending Operation Choke Point 2.0

This decree officially ends the crypto sector’s so-called “Operation Choke Point 2.0,” a period under the Biden administration when many Web3 companies experienced unexplained bank service cutoffs. These exclusions were often justified under compliance pretenses but were seen as indirect pressure against crypto innovation. Federal agencies will be required to remove internal policies that encourage such exclusions. The Small Business Administration will review partnerships to detect discrimination in credit granting to crypto companies and other affected sectors. Some banks have already begun revising their policies and consulting with Republican attorneys general to avoid regulatory violations.

Trump’s Crypto Policy Stance

Trump positions himself as a defender of the crypto industry. Earlier in 2025, he signed a decree establishing a Strategic Reserve of bitcoin and national crypto-assets. He also opposed central bank digital currencies (CBDCs), citing threats to individual freedoms. This latest decree further solidifies his influence on the future of crypto regulation in the United States.

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Source: Trump Threatens Sanctions on Banks Over Crypto Discrimination by Lydie Musekwa, published August 6, 2025.

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Frequently Asked Questions (FAQ)

Presidential Decree and Crypto Companies

Q: What is the main purpose of President Trump's proposed decree regarding banks and crypto? A: The decree aims to protect crypto companies and individuals from discriminatory banking practices, specifically preventing banks from excluding them for political reasons or their involvement in the crypto sector. Q: What action will regulators take based on this decree? A: Regulators will be instructed to investigate banking practices and are authorized to impose sanctions on financial institutions found to be unlawfully closing accounts based on political discrimination. Q: What is "Operation Choke Point 2.0" and how does this decree address it? A: "Operation Choke Point 2.0" refers to a period under the Biden administration where Web3 companies allegedly faced unexplained bank service cutoffs, often justified by "reputational risk." The decree aims to end this by ordering regulators to cease considering reputational risk as a basis for such exclusions. Q: What are the potential consequences for banks found guilty of discriminatory practices? A: Banks found guilty of discriminatory practices could face fines and other disciplinary actions from the mandated regulators. Q: How does this decree align with President Trump's broader crypto policy? A: This decree reinforces Trump's stance as a proponent of the crypto industry, building on previous actions like establishing a Strategic Reserve of bitcoin and opposing CBDCs. It signals a commitment to ensuring neutral access to financial services for crypto-related entities.

Crypto Market AI's Take

This development highlights a significant shift in the regulatory landscape for the cryptocurrency industry. By targeting discriminatory banking practices and "Operation Choke Point 2.0," the decree aims to foster a more open and accessible financial environment for crypto businesses. At AI Crypto Market, we are committed to providing tools and insights that help navigate these evolving regulations. Our AI-driven analysis and trading bots are designed to adapt to market changes and ensure compliance, offering users a secure and efficient platform for their digital asset management. For those interested in understanding the broader implications for market stability and innovation, our AI-powered market analysis section offers deeper insights.

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