White House Targets Bank-Led Chokepoint 3.0 Over Crypto Debanking

The White House is planning to issue an executive order aimed at curbing “Operation Chokepoint 3.0,” which involves banks making politically driven decisions to block customers, particularly those in the crypto industry. The draft order proposes penalties for financial institutions that violate the Equal Credit Opportunity Act, antitrust laws, and consumer financial protection laws.

US Banks Under Radar for Chokepoint 3.0

According to a recent Reuters report, the White House has initiated a crackdown on financial institutions that discriminate against individuals or entities based on politically motivated reasons. The order is expected to be signed this week and would allow the government to levy penalties, enforce compliance agreements, or take other disciplinary measures against violators. This move could significantly restrict crypto debanking.

Reportedly, the Trump administration is launching far-fetched reform targeting banking rules, including capital requirements. He believes that such a regulatory move could spur economic growth and drive innovation.

Significantly, the government’s new focus on banking regulation could eliminate ‘Operation Chokepoint 3.0.’ The term is used to describe banks and financial institutions’ alleged efforts to restrict or limit access to financial services for certain industries or businesses, especially crypto-related. For instance, JPMorgan reportedly halted Gemini’s re-onboarding process due to Tyler Winklevoss’ criticism of the bank’s new data access policy.

In response to this significant development, Binance founder Changpeng Zhao shared an X post, arguing that the move could “open banking for crypto internationally.”

Moreover, Wall Street banks faced criticism after congressional Republicans and Republican-led states accused them of practicing “woke capitalism” by unfairly severing ties with gun manufacturers, fossil fuel companies, and other businesses seen as right-leaning.

Crypto Debanking Continues To Exit

Since the Joe Biden era, banking institutions have been hostile to the crypto industry, a phenomenon many have described as “Operation Chokepoint 2.0.” With Wall Street giants like JPMorgan cutting ties with crypto platforms, the regulatory landscape became increasingly challenging for crypto businesses. Prominent figures like Elon Musk and David Schwartz have raised voices against this restrictive stance, with the Ripple CTO calling it an indirect government regulation. Musk asserted that more than 30 tech founders were “secretly debanked.”

With Donald Trump taking the presidential reins in January 2025, his administration is reportedly working to bridge the gap between traditional banking and cryptocurrency. This move aims to integrate the two financial systems, fostering a more inclusive and modern financial landscape. The president accused JPMorgan Chase and Bank of America of making politically driven decisions, which the banks denied.

Recently, as CoinGape reported, Andreessen Horowitz shed light on the emergence of Operation Chokepoint 3.0. despite the seeming conclusion of Chokepoint 2.0. The a16z partners alleged that JPMorgan has introduced a fee structure for data aggregators, a move that could significantly impact fintech companies like Venmo, Robinhood, and Coinbase.

The Trump administration’s efforts to reform banking rules and promote economic growth through regulatory changes could further support the integration of crypto into the mainstream financial system. By curbing Operation Chokepoint 3.0, the government hopes to foster a more inclusive financial landscape, bridging the gap between banking and crypto.