The White House is reportedly considering an executive order that would direct bank regulators to investigate claims of debanking within the cryptocurrency sector. This potential action addresses growing concerns about alleged political bias hindering fair banking access for digital asset companies.
The order would specifically examine claims of systematic exclusion from financial services, termed ‘Operation Choke Point 2.0’ by industry observers. Coincenter contributor Nic Carter coined this phrase to describe purported patterns of crypto firm debanking observed during the Biden administration.
Key directives include ensuring equal access to banking services for crypto businesses and scrutinizing whether banks engaged in politically motivated account closures. Regulators would review guidance potentially encouraging banks to deny services based on reputational risks rather than financial merits.
The Federal Deposit Insurance Corporation (FDIC) and Office of the Comptroller of the Currency (OCC) reportedly adopted heightened scrutiny toward perceived reputational risks. The contemplated order seeks regulatory accountability regarding consumer protection measures that may have inadvertently targeted legitimate crypto businesses.