Catenaa, Friday, August 08, 2025- President Donald Trump signed an executive order Thursday aimed at stopping federal regulators from pressuring banks to cut ties with cryptocurrency firms, a move cheered by Republican lawmakers and digital asset advocates.
The order specifically targets the use of “reputational risk” as a justification for regulatory scrutiny, a practice critics say unfairly singled out crypto businesses.
“These practices erode public trust in banking institutions and regulators,” the White House said in a fact sheet, citing harm to small businesses and individuals.
Trump’s order is widely seen as a response to complaints from crypto firms about “Operation Choke Point 2.0”
The phrase was coined in 2023 to describe perceived efforts by federal agencies to isolate digital asset companies from traditional banking.
Regulatory bodies including the Federal Reserve, FDIC and OCC had already pledged to end the use of reputational risk in supervision. But Thursday’s executive action makes that stance formal White House policy.
Lawmakers quickly weighed in. Rep. French Hill, R-Ark., called the move “an important step” against politically motivated financial discrimination.
Sen. Cynthia Lummis, R-Wyo., said the order adds “transparency and accountability” to the federal banking system.
The move comes amid growing partisan debate over crypto regulation in Washington, with Trump seeking to position himself as a champion of digital finance and innovation.
