Trump plans to issue an executive order to cancel the Choke Point 2.0 campaign

President Donald Trump is preparing to sign a new executive order targeting regulations affecting crypto withdrawals under the Joe Biden administration. Reports say the order will seek to reverse policies tied to what industry leaders call "Operation Choke Point 2.0." Trump will end crypto withdrawals The initiative, a reference to the Obama-era crackdown on installment lenders and arms dealers, is said to be aimed at preventing crypto businesses from securing banking services The Trump administration intends to end these restrictions that have made it difficult for banks specializing in cryptocurrencies to operate. "The Trump administration is clearly preparing to sign an executive order that could undo some of the Federal Reserve's policies that have prevented crypto banks from accessing so-called master accounts. This will be a big problem for crypto banks like Custodia Bank and Caitlin Long, which are currently battling the Federal Reserve in court over the issue," Eleanor Terrett wrote. The full details of the executive order are still being finalized. It is expected to address the Federal Reserve's policies on the issuance of the main account Notably, these accounts allow banks to conduct direct transactions with the Fed. During Biden's presidency, crypto-friendly banks such as Custodia have been repeatedly denied holding these accounts In short, these regulations indirectly prevent them from accessing critical financial infrastructure. If these policies change, it could dramatically reshape the U.S. digital asset industry. "This is notable because the Fed and the FDIC have not yet rescinded any anti-crypto guidance, despite comments last month from Federal Reserve Chairman Jerome Powell that he was impressed by the growing number of crypto withdrawals and that the Fed would reconsider the issue," he said. Eleanor Terrett wrote. However, the Federal Reserve operates independently and is not required to follow directives from the White House or Congress Any attempt to influence the country's policy may be met with opposition from central bank officials. Trump's third executive order related to cryptocurrencies If signed, it would be Trump's third crypto-related executive order since returning to office. His first executive order, issued on January 23, established the President's Working Group on Digital Asset Markets Meanwhile, his second order established a U.S. government Bitcoin reserve fund along with a separate digital asset reserve. Despite these moves, Trump's recent White House Crypto Summit disappointed industry leaders. Many felt that the discussions lacked substance and that his plans for Bitcoin reserves failed to raise market sentiment Instead of buying new Bitcoins, the authorities intend to use the confiscated assets from criminal cases. In addition, broader economic policies have added to market uncertainty Recent tariffs imposed on China, Mexico, Canada, and potentially the EU have shaken traditional markets Institutional investors have responded by withdrawing money from Bitcoin and Ethereum ETFs over the past week. As a result, Bitcoin fell below $80,000 for the first time in four months. Ethereum also fell to $1,870, the lowest level since November 2023.