The White House’s executive order targets Operation Chokepoint 3.0, fining banks for politically motivated crypto debanking and conservative groups.
To mitigate the new “Operation Chokepoint 3.0,” the White House is contemplating implementing an executive order that would penalize banks that restrict consumers for politically motivated reasons. The draft order suggests that financial institutions that contravene the Equal Credit Opportunity Act, antitrust laws, and consumer financial protection laws may be subject to penalties.
Banks in the United States are being monitored for Chokepoint 3.0
A recent report from Reuters indicates that the White House has implemented a crackdown on financial institutions that discriminate against individuals or entities for politically motivated reasons. This week, the government is anticipated to sign the order, which would authorize the imposition of penalties, the enforcement of compliance agreements, or the implementation of other disciplinary measures against violators. This action has the potential to substantially limit the practice of debanking with cryptocurrency.
Reportedly, the Trump administration is launching far-fetched reform targeting banking rules, including capital requirements. He believes that such a regulatory move could spur economic growth and drive innovation.
In a significant way, the government’s recent emphasis on banking regulation can potentially eradicate “Operation Chokepoint 3.0.” The term is employed to denote the purported endeavors of financial institutions and banks to restrict or limit the availability of financial services to specific industries or businesses, particularly those that are crypto-related. Tyler Winklevoss’ criticism of the bank’s new data access policy reportedly resulted in JPMorgan suspending Gemini’s re-onboarding procedure.
Changpeng Zhao, the founder of Binance, shared an X post in response to this significant development, contending that the move could “open banking for crypto internationally.”
Furthermore, Wall Street banks were subjected to criticism after congressional Republicans and Republican-led states accused them of engaging in “woke capitalism” by unjustly severing ties with gun manufacturers, fossil fuel companies, and other businesses perceived as right-leaning.
Crypto debanking persists
Banking institutions have been adverse to the crypto industry since the Joe Biden era, a phenomenon called “Operation Chokepoint 2.0” by many. The regulatory landscape for crypto businesses became more difficult as Wall Street giants like JPMorgan severed their connections with crypto platforms. This restrictive stance has been criticized by prominent figures such as Elon Musk and David Schwartz, with the Ripple CTO characterizing it as an indirect government regulation. Musk claimed that over 30 tech founders were “secretly debanked.”
Donald Trump’s administration purportedly endeavored to reconcile the disparity between conventional banking and cryptocurrency following his assumption of the presidency in January 2025. This initiative aims to promote the integration of the two financial systems, thereby promoting a more contemporary and inclusive financial environment. The president accused JPMorgan Chase and Bank of America of making politically motivated decisions, a charge that the institutions denied.
Andreessen Horowitz recently disclosed the existence of Operation Chokepoint 3.0, despite the apparent conclusion of Chokepoint 2.0, as reported. The a16z partners claimed that JPMorgan has implemented a fee structure for data aggregators, a development that could substantially affect fintech companies such as Robinhood, Coinbase, and Venmo.
The integration of crypto into the mainstream financial system could be further bolstered by the Trump administration’s efforts to reform banking rules and promote economic development through regulatory changes. The government aims to encourage a more inclusive financial environment by reducing Operation Chokepoint 3.0 and bridging the divide between banking and crypto.
