Donald Trump, the 47th President of the United States, rescinded 78 orders on the first day he assumed office but left out Executive Order 14067. This decision has prompted queries, especially among crypto enthusiasts; it associated the order with policies perceived as unfriendly to the crypto business.
Executive Order 14067, signed by Biden on March 9, 2022, was regarding “the responsible development of digital assets” and thus made way for what some call Operation Choke Point 2.0. These critics note that regulators have been able to cage and partially shut out crypto firms from the banking ecosystem by comparing the policy to another program called Operation Choke Point that targeted some high-risk industries.
Crypto advocates react to Trump’s decision
The crypto community had expected Trump to have rescinded Executive Order 14067 as part of his administration’s campaign promises. Trump himself, at the 2024 Bitcoin conference, categorically said that the administration would discontinue Operation Choke Point 2.0 as it was discriminatory against the cryptos. However, financial expert Adam Cochran pointed out that the executive order has yet to be updated for actual stock trading, and there is still much regulatory authority in specific agencies.
Cochran was also angered that while Trump has framed his presidential campaign around repealing all that has to do with the Inflation Reduction Act, he did not at any one time refer to the order on crypto. Some advocates have been expecting pure relief, but the omission has sparked controversy about the short-term effects on businesses and investors in this budding space.
Operation Choke Point 2.0 and its Impact
Federal regulators have been accused of trying to hurt the crypto industry through a sequel to Operation Choke Point. Despite Biden’s administration denying its existence, enforcement actions of agencies like the SEC, FDIC, and OCC have been used to support the existence of the initiative. Regulators issued a joint statement in January 2023 on the next Prime Broker Risks of crypto in banking operations. Later, several crypto-friendly banks, such as Silvergate Bank and Signature Bank, disappeared.
New York’s Signature Bank, which regulators shut down despite being solvent at the time, was perceived to fit in the list due to its crypto engagements. Coinbase’s Chief Legal Officer, Paul Grewal, added that through arguments based on freedom of information, some banks received letters instructing them to cease facilitating crypto-related services.
The Ross Ulbricht debate
When Trump came up with things to do on his first day in office, he should have known that commuting Ross Ulbricht’s prison sentence would not be a popular move. Many people in the libertarian and crypto enthusiast communities have rallied behind Ulbricht, the founder of the Silk Road, and many expected Trump to act immediately. At the moment, the fate of digital currencies and crypto enthusiasts, as well as the survival of Ulbricht and his supporters, has to wait for subsequent development.