In a move that could significantly reshape the landscape for banks supporting digital assets, President Donald Trump’s administration is reportedly preparing to sign an executive order aimed at rescinding certain Federal Reserve (Fed) policies that have restricted crypto banks from accessing key “master accounts.”
A report from Decrypt highlights that this executive order may explicitly target rules associated with “Operation Chokepoint 2.0,” a term used to describe efforts by the Biden administration to limit banking services available to crypto companies.
Operation Chokepoint 2.0 Targeted
Bo Hines, Executive Director of the White House’s Presidential Working Group on Digital Assets, confirmed to the news outlet on Monday the existence of the executive order, stating that the industry should expect developments “in short order.”
While he did not provide further details to Decrypt, Hines emphasized the Donald Trump administration’s commitment to dismantling the practices associated with Operation Chokepoint 2.0.
The executive order is expected to have a notable impact on Federal Reserve policy, according to a Decrypt source on the matter. Master accounts are crucial for banks to make direct payments and access Fed services.
Currently, all federally chartered banks hold master accounts, allowing them to serve customers effectively across the nation. However, during the Biden administration, the Fed has consistently denied master accounts to crypto-focused banks, such as Custodia, hampering their growth and operational capabilities.
Third Crypto-Focused Executive Order On The Horizon
As the Trump administration races to achieve its policy objectives, it faces potential legal challenges that could complicate the implementation of this new executive order.
Decrypt indicates that senior White House officials will convene to assess any legal hurdles before the order is presented for President Trump’s signature. In addition to the focus on banking access, the executive order may also propose other directives.
Sources close to the news outlet suggest it could include provisions stating that stablecoins—crypto assets designed to maintain a stable value, often pegged to the US dollar—should not be classified as securities.
If Trump signs this executive order in the coming days, it will mark his third significant action regarding cryptocurrencies since resuming office. The first order, signed on January 23, established a Presidential Working Group on Digital Asset Markets, comprising several high-profile cabinet members.
The second order, issued last week by the Trump administration, directed the creation of a US government strategic Bitcoin reserve alongside a separate stockpile for other digital assets.
The recent decision had a detrimental effect on crypto prices, leading to a 25% decrease in the total market cap valuation. The announcement failed to disclose any plans for further token purchases, including Bitcoin, Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA).
As such, BTC dropped below $78,000 on Monday, marking its lowest level since the period following Trump’s election victory last November, representing a 28% decline from its all-time high above $109,000.
Featured image from DALL-E, chart from TradingView.com
