Operation Chokepoint 2.0 has been blamed for the financial exclusion of cryptocurrencies under Biden.
Trump refuses to divest from cryptocurrencies, saying the US must remain competitive.
President Donald Trump, who has positioned himself as a pro-cryptocurrency leader and an outspoken critic of the previous administration, recently condemned the de-banking of cryptocurrency companies, calling it a "very bad and very dangerous" trend.
He noted that this practice originated under President Biden's watch and continues to hamper the US cryptocurrency industry.
"They are afraid of the organizers."
In his final appearance in the Oval Office on June 28, Trump said:
There are a lot of cancellations of banking services. These people are very bad and dangerous, and they shouldn't do this.
This came in response to a recent exchange with journalist Sander Lutz, in which Trump was asked whether he would consider signing an executive order to address the issue.
In response, Trump said:
I can tell you, because I was a victim myself, because of my political orientation, that the big banks have been very bad with us. And I think the Biden team advised him to do that, because the only group the banks fear is the regulators. They fear them very much.
While Trump stopped short of confirming a new executive order, he hinted that the issue still required action, noting that the problem of bankruptcy "continues to this day."
Is there a conflict of interest in the cryptocurrency space?
He also avoided inquiries about whether he would distance himself from his family's cryptocurrency projects to avoid a conflict of interest in promoting cryptocurrency legislation.
Instead, Trump emphasized the strategic importance of embracing digital assets, stating that if the United States turned its back on cryptocurrencies, rival countries like China would take advantage.
Trump added,
“Many Democrats have stated that they will not support cryptocurrency bills in Congress solely because of your personal and family cryptocurrency projects.”
Operation Choke Point 2.0 in the Face of Trump's Decline
For those unaware, the Trump and Biden administrations are taking fundamentally opposing approaches to access to crypto banking.
Under President Biden, regulators have allegedly pressured banks to cut ties with digital asset firms, an effort critics have dubbed "Operation Choke Point 2.0."
This push has led to widespread de-banking in the crypto sector, with banks shying away from transactions due to perceived reputational risks.
In contrast, the Trump administration is actively working to remove these barriers.
It has rolled back controversial policies like SAB 121, strengthened anti-discrimination rules in banking, and introduced enforcement actions to prevent banks from unfairly excluding crypto companies from financial services.
Alongside this pro-cryptocurrency stance, Trump has intensified his criticism of the Federal Reserve, particularly for its reluctance to cut interest rates.
Powell's problem and what lies ahead?
Trump also renewed his longstanding criticism of Federal Reserve Chairman Jerome Powell—whom he originally appointed—calling him a "stubborn mule" and urging him to resign.
This clash follows previous statements made by Powell in January, in which he indicated that banks could deal with cryptocurrencies, provided they had strong risk controls in place.
“The threshold was a little higher for banks involved in cryptocurrency activities, because they are so new.”
These comments are consistent with recent reports from the Wall Street Journal indicating that an upcoming executive order will prohibit banks from denying services to crypto companies based on their industry or perceived political affiliations.
If passed, this could represent a pivotal shift toward restoring equitable financial access and reaffirming institutional support for the growth of the cryptocurrency sector.
