The Wall Street Journal: Trump plans to sign an executive order to stop Chokepoint 2.0, supporting the encryption industry from being discriminated against by banks.

The US President Donald Trump is considering issuing an executive order requiring banks not to refuse service based on political views or industry nature, including encryption businesses. This move is seen by the outside world as Trump's intention to end 'Operation Chokepoint 2.0', which is the debanking action against the encryption industry long wick candle. However, experts also warn that although Trump supports the encryption industry, the resistance of TradFi to the industry may continue until 2026.

Trump executive order requires banks to stop Chokepoint 2.0

According to The Wall Street Journal, the Trump administration is considering using executive orders to prevent banks from cutting off financial services to some 'politically unpopular' industries, including startups and encryption companies.

This move is seen as a long wick candle for the past few years, with banks suspected of collectively cutting off financial services to certain industries, dubbed as 'Operation Chokepoint 2.0', targeting encryption currencies, new tech startups, and even some weapons and fossil fuel industries.

Three banks are suspected of supporting the encryption industry, causing them to collapse

The U.S. banking industry also experienced a major shake-up in 2023. Not only did Silicon Valley Bank SVB suddenly collapse, SilverGate Bank announced liquidation, and Signature Bank was ordered to close by a New York financial institution.

As these three banks are closely related to the encryption industry, experts suspect that this is a crackdown led by the Biden (Joe Biden) government. After Trump took office, he also publicly stated at the White House encryption summit on 3/7 this year, that he will end 'Operation Chokepoint 2.0'.

At least 30 businesses have been refused banking services during Biden's tenure.

According to Musk (Elon Musk)'s previous post on X, during Biden's term, at least 30 encryption and tech companies were refused financial services by banks, including account opening, fund transfers, etc.

The affected operators were not informed of the reasons, and some suspected that it was because their industry characteristics or political tendencies did not meet the expectations of the banks, resulting in a 'silent blockade'.

(a16z Founder: Silicon Valley, pressured by Biden, was forced into the policy field, while Trump's policy is crucial for AI and encryption currencies )

Wall Street institutions clash with state governments, accused of refusing to serve TradFi

In addition to the encryption industry, some major banks have also been accused of refusing to provide services to the US gun manufacturing and fossil fuel industries. Executives from JP Morgan, City Bank, Wells Fargo, and others have visited officials in Texas and Oklahoma to defend their positions.

These state governments question whether banks have abused corporate decision-making power, imposing unfair treatment on specific industries with long wick candle.

Democratic Party member Warren also criticized banking institutions for not excluding any users

In response, Democratic Senator Elizabeth Warren strongly criticized banks at a hearing in February this year, saying:

"No matter who you vote for, what your beliefs are, or where you come from, you should not be denied financial services by banks or deprived of related rights."

Even though Trump supports the encryption industry, the Fed's attitude remains variable

Some experts have pointed out that although Trump is friendly to the encryption industry, the Fed will not change directors before 2026, which could become a systemic barrier. Experts also pointed out that even if the OCC and FDIC relax restrictions on the encryption industry, assuming the Fed does not cooperate, the industry will still be greatly hindered.

This article Wall Street Journal: Trump plans to sign an executive order to stop Chokepoint 2.0, supporting the encryption industry from being discriminated against by banks first appeared in ChainNews ABMedia.