Trump plans to sign an executive order to stop Chokepoint 2.0, supporting the encryption industry against banking discrimination

Gate News bot news, according to The Wall Street Journal (WSJ), the Trump administration is considering using executive orders to prevent banks from cutting off Financial Service to certain ‘politically unpopular’ industries, including new tech startups and encryption companies with long wick candles.

This move is considered a long wick candle to what has been a Financial Service of certain industries that banks have collectively suspected to be suppressing for the past few years, known as Operation Chokepoint 2.0, covering encryption currencies, new technology companies, and even some weapons and fossil fuel industries.

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

Because all three banks have close ties to the encryption industry, some experts suspect that this is a crackdown led by the Biden administration. And after Trump took office, he also publicly stated at the White House encryption summit on March 7th of this year that he would end Operation Chokepoint 2.0.

According to billionaire Elon Musk’s previous posts on X, during Biden’s tenure, at least 30 encryption and technology companies were refused Financial Service by banks, including opening accounts and fund transfers.

And these affected operators were not informed of the reasons, some operators suspect that it is because their industry attributes or political tendencies do not meet the expectations of the bank, and have been ‘silently blocked’.

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. Senior executives from JPMorgan Chase, Citigroup, and Wells Fargo have visited Texas and Oklahoma to defend their positions.

The state government of the United States questions whether banks are abusing corporate decision-making power, implementing unfair treatment to specific industries with long wick candles.

On this, Democratic Senator Elizabeth Warren criticized banking institutions at a hearing in February this year, saying: “No matter who you vote for, what you believe, where you come from, you should not be denied Financial Service or deprived of related rights by banks.”

Some experts believe that although Trump is friendly to the encryption industry, the Fed will not change its directors before 2026, which could become a systemic barrier. Experts also point out that even if the OCC and FDIC in the United States relax restrictions on the encryption industry, if the Fed does not cooperate, the industry’s development will still be greatly hindered.