Trump signs executive order to stop banks from cutting off crypto originally appeared on TheStreet .
On Aug. 7, President Donald Trump signed an executive order aimed at what the administration characterizes as the ideological "debanking" of crypto individuals and organizations from U.S. banks.
The order explicitly instructs federal banking regulators to eliminate "reputational risk" as a basis for scrutinizing or severing relationships with customers. The White House argued that this vague term — often used by the Federal Reserve and FDIC — has been weaponized to cut off crypto firms from the U.S. financial system.
"The digital assets industry has also been the target of unfair debanking initiatives," the White House said in a fact sheet. "These practices erode public trust in banking institutions and regulators, harm livelihoods, freeze payrolls, and impose significant financial burdens on law-abiding Americans."
Related: What is Crypto? Cryptocurrency explained
Trump's move directly targets what the crypto industry has long described as "Operation Choke Point 2.0" — a term popularized by Castle Island Ventures co-founder Nic Carter in 2023 to describe an alleged backdoor campaign by regulators to isolate crypto businesses from the banking sector. The original Operation Choke Point was a 2013 DOJ initiative that pressured banks to de-risk from entire industries like payday lenders and firearm dealers.
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Banks can't blacklist crypto
The executive order mandates that federal agencies such as the Federal Reserve, OCC, and FDIC remove "reputational risk" considerations from their internal guidelines and training materials. The Fed previously defined reputational risk as the "potential that negative publicity regarding an institution's business practices… will cause a decline in the customer base."
Crypto advocates say that definition allowed regulators to subtly discourage banks from servicing crypto firms without having to admit bias.
The order further directs regulators to audit prior debanking incidents and provide a report detailing whether any financial institution denied services unlawfully based on ideology. Those found guilty could face sanctions, including fines and restitution.
Gemini-JPMorgan dispute intensified pressure
The executive order comes weeks after a public clash between crypto exchange Gemini and JPMorgan, where the bank refused to onboard the exchange. Gemini co-founder Tyler Winklevoss accused JPMorgan of carrying out a "modern-day Operation Choke Point," aimed at suffocating fintech innovation.
Ten exchanges reportedly sent a joint letter to President Trump shortly after the incident, urging the administration to act. The August 7 order appears to be a response.
Financial institutions regulated by the Small Business Administration are also now required to review accounts previously closed on ideological grounds — and reinstate them where appropriate.
Trump signs executive order to stop banks from cutting off crypto first appeared on TheStreet on Aug 7, 2025
This story was originally reported by TheStreet on Aug 7, 2025, where it first appeared.
