Trump announced the rescission of 78 executive orders on his first day in office, but did not include 14,067 executive orders. The president has also not yet commuted Ross Ulbricht’s prison sentence on Silk Road.
The president did not mention rescinding Biden’s Executive Order 14067, the executive order on digital assets that enabled Chokepoint 2.0. Biden and a group of US regulators launched Operation Choke Point 2.0 to restrict the cryptocurrency industry’s access to the banking system.
Trump fails to rescind Executive Order No. 14067 issued by Biden
Trump’s rescission of Biden did not include EO 14067, the executive order on digital assets that enabled Chokepoint 2.0.
Therefore, professional officials in regulatory offices currently still have broad powers against entities dealing with cryptocurrencies….
– Adam Cochran (adamscochran.eth) (@adamscochran) January 21, 2025
Yesterday, Donald Trump was inaugurated as the 47th President of the United States, and the world was waiting for him to fulfill his promises on his first day in office. The cryptocurrency community was waiting for Trump to cancel Executive Order No. 14067 issued by Biden as promised, but that did not happen.
“As president, I will immediately shut down Operation Choke Point 2.0. They want to strangle you and put you out of business; we will not let that happen.”
~Donald TrumpUS President, at the Bitcoin 2024 conference.
Executive order 14067The order, titled “Ensuring Responsible Development of Digital Assets,” was signed on March 9, 2022. Cryptocurrency companies long overshadowed by the executive order, as well as observers familiar with its unfair targeting of the industry, were shocked that Trump did not do so. I remember that yesterday.
Adam Cochran, a financial expert, posted that Trump’s repeal of the Biden EO did not include 14067. Cochran believes that career officials in regulatory offices still have broad powers against entities that deal with cryptocurrencies.
The financial expert expressed his sadness after Trump canceled 78 offshore organizations, but he “couldn’t even get hold of the digital assets.” Cochran also said he was upset that Trump had time to remove parts of the inflation-reducing law, but none of the crypto day was promised.
1 user Argue That Trump has just taken office and his recent cryptocurrency purchases still make him optimistic. Him too open It could be bad for short-term traders, especially those who were counting on Trump signing the order yesterday.
Cochran male Of every day a cryptocurrency promises, the one that will hurt people the most is “Free Russia.” Trump He said He told attendees at the 2024 Liberal National Convention in May last year that he would commute Ross Ulbricht’s sentence once he took office.
Choke Point 2.0 is constricting the cryptocurrency ecosystem
Choke Point 2.0 was considered a successor to the original Operation Choke Point, which was launched under the Obama administration in 2013 and ended by Trump in 2017. Both initiatives investigated banks and their relationships with certain high-risk industries to combat fraud and money laundering.
The Biden administration has denied the existence of Operation Choke Point 2.0, but critics have argued that enforcement actions taken by several regulatory agencies have corroborated its existing operations. The Securities and Exchange Commission (SEC), Federal Deposit and Insurance Corporation (FDIC), and Office of the Comptroller of the Currency (OCC) are believed to be discouraging banks from providing cryptocurrency services to cryptocurrency companies.
The process became clear after federal regulators Issued Joint statement in January 2023 warning banks about the risks of crypto assets. The decision followed the collapse of two major players in the crypto banking space, Silvergate Bank and Signature Bank.
Signature Bank also witnessed a bank run after the collapse of Silicon Valley Bank (SVB). Regulators seized the bank even though it was still financially healthy at the time. A member of the Board of Directors of Signature Bank Argue Its downfall was a clear message from regulators saying they want to discourage banks from dealing with the cryptocurrency sector.
Recently, several members of the cryptocurrency community revealed that Choke Point 2.0 was not just a theory. Paul Grewal, Chief Legal Officer at Coinbase It has been detected In December, the company received “pause letters” through Freedom of Information Act requests. Grewal confirmed that the messages showed that the Fund Distribution Commission (FDC) actively urged banks to halt or avoid cryptocurrency-related activities in 2022.
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