CZ Weighs In: White House Eyes Crypto 'Chokepoint' Crackdown

White House Order Targets Alleged Anti-Crypto Banking Practices

The White House is reportedly preparing an executive order aimed at curbing what some call “Operation Chokepoint 3.0,” a term used to describe alleged discriminatory banking practices against politically unpopular sectors, particularly within the digital asset space.

This initiative could penalize banks for ideologically motivated financial restrictions, potentially reshaping how institutions interact with crypto firms.

Key Points:

• Banks may face fines for politically biased financial restrictions.
• The White House order seeks to promote fair access to banking for crypto firms.

Executive Order Details

A draft executive order reviewed by Reuters suggests the Trump administration is considering enforcement measures against banks found to be making ideologically driven decisions that violate the Equal Credit Opportunity Act, antitrust laws, or consumer protection rules. Fines could be levied against institutions found guilty of such conduct.

The move comes amidst concerns raised by incidents such as JPMorgan’s alleged freezing of Gemini’s re-onboarding process, which was reportedly triggered by Tyler Winklevoss’ criticism of the bank. These events have fueled the debate over fairness and access within the banking sector.

CZ's Reaction

Binance founder Changpeng Zhao (CZ) addressed the situation on X, stating, “It used to be that corresponding banks in the US block transactions involving crypto (fiat for buying crypto). This opens banking for crypto internationally.”

The History of Crypto Debanking

Concerns about targeted de-banking of crypto firms by institutions like JPMorgan and Bank of America date back to 2021, labeled by some as “Operation Chokepoint 2.0.” Industry figures such as Elon Musk and Ripple CTO David Schwartz have criticized this trend, with Schwartz calling it indirect government regulation.

Alex Rampell, General Partner at Andreessen Horowitz, recently suggested that while previous chokepoints were regulator-driven, the current wave seems to originate from the banks themselves, raising questions about institutional bias. For those developing crypto solutions, Codeum offers security audits to ensure robust and compliant projects.

Banks Deny Political Bias

Major banks deny acting on political motivations. However, with increasing pressure from conservative policymakers and crypto advocates, the Trump administration's draft order could signal a significant shift toward ideological neutrality within the financial system, potentially dismantling “Operation Chokepoint 3.0.”