#TRUMP Shields Cryptocurrency Sector: Historic Executive Order Ending Operation Bottleneck 2.0!
On August 7, 2025, #US President Donald Trump signed a historic executive order aimed at ending attempts to exclude the cryptocurrency sector from banking transactions. This step, long criticized by cryptocurrency advocates and presented as "Operation Bottleneck 2.0," constitutes a direct challenge.
๐ Primary Purpose of the Executive Order
The executive order aims to prevent federal banking regulators (Federal Reserve, FDIC, and OCC) from disclosing vague and arbitrary definitions like "reputational risk" to financial institutions and prevent them from using cryptocurrency accounts.
The White House released a memorandum stating:
"The digital asset sector has also been targeted by unfair debanking attempts. These practices undermine public trust in banking institutions and industries, harm livelihoods, and impose heavy financial burdens on Americans."
๐ "Reputational Risk" Definition Cleaned Up
The executive order mandates that banking regulators remove the phrase "reputational risk" from their training activities, internal market launches, and decision-making processes. The Fed previously defined this risk as:
"The potential for negative developments related to an election campaign to cause a decline in customer experience."
Cryptocurrency advocates, however, argued that this definition allows for the targeting of crypto-friendly marketing systems, and that this situation clearly exists.
๐ Retrospective Review and Sanctions
Trump's executive order covers not only new applications but also past cases. Federal agencies will be required to thoroughly review and report past bank account closures and denials of service related to cryptocurrencies.
If these decisions are found to be based on ideological grounds, the institutions in question will face sanctions such as fines, compensation, and account reopening requests.
๐งพ Gemini-JPMorgan Tensions and the Industry's Reaction
The background to the executive order is the tension between Gemini and JPMorgan that has been brewing in recent weeks. When JPMorgan refused to provide service to the crypto exchange Gemini, Gemini co-founder Tyler Winklevoss described the situation as "a modern-day Operation Bottleneck."
Following this, 10 crypto companies, including major exchanges, sent a joint letter to Trump, demanding an update on exclusionary practices against the sector. The August 7th death warrant is seen as a direct response to this call.
๐ Protections for Small Businesses Too
The executive order applies not only to large corporations but also to financial institutions regulated by the Small Business Administration (SBA). These institutions will be required to review accounts previously closed for "ideological" reasons and reopen those accounts held at the rights center.
๐ง What is Operation Bottleneck 2.0?
The term "Operation Bottleneck 2.0" was coined in 2023 by Nic Carter, founder of Castle Island Ventures. This term refers to the alleged use of cryptocurrency by third parties through unofficial channels to pressure transactions to achieve systemic objectives.
Operation Bottleneck (Choke Point), launched in 2013 under the Obama administration, resulted in the restriction of banking relationships in certain regions deemed "high-power sectors" (arms dealers, payday loan providers, etc.).
๐ฌ Conclusion: Trump Guarantees "Banking Access" for the Cryptocurrency Sector
Trump's executive order is considered a clear challenge to discriminatory practices in cryptocurrency marketing, as well as a turning point that strengthens the readiness of this market. Crypto companies will now be solely subject to technical compliance and legal justification; they will be prevented from being excluded from the financial system due to ideological risks.
This move is being hailed as a major victory by cryptocurrency advocates, and the new political landscape following the 2024 elections stands out as a strong indicator that digital assets will become increasingly important.