Crypto’s New Political Power Play
Key Highlights:
• President Trump to sign executive order targeting banks that debank crypto firms or individuals for political reasons
• Regulators may investigate institutions under antitrust, consumer, or equal opportunity laws
Yello Paradisers! In what could become one of the most consequential crypto-related moves of his presidency, Donald Trump is preparing to sign an executive order aimed at punishing banks that “debank” crypto firms and politically aligned individuals.
According to a report from The Wall Street Journal, the draft order demands regulators investigate whether financial institutions have violated federal laws, and threatens fines and consent decrees for those found guilty.
This isn’t your standard Friday memo. The order reportedly covers everything from Equal Credit laws to consumer protection, and leans heavily into conservative accusations that banks have been weaponized against them.
And if you think this is just crypto drama? Well, some of the biggest names in the industry, including Coinbase, Kraken, and Uniswap Labs, have already opened up about being unbanked without clear explanation.
Operation Choke Point 2.0: Trump’s Reversal
Banks have long defended their decisions as risk-based, especially under heightened anti-money laundering scrutiny during the Biden years. But the crypto crowd has another name for it: Operation Choke Point 2.0, a term borrowed from a 2013 DOJ effort that once targeted “high-risk” industries like payday lending and firearms.
Under the new order, regulators will be directed to remove policies that may have enabled debanking, and even the Small Business Administration will be roped in to review its loan partners. The Attorney General may also receive referrals on violators.
Even the Fed, OCC, and FDIC have already walked back the use of “reputational risk” as an evaluation metric, likely a preemptive move.
Crypto Execs Rally: This Time, It’s Personal
If it feels like crypto is turning into a political wedge issue, it’s because it is. Eric Trump revealed earlier this year that his first foray into crypto came after banks began canceling his accounts, allegedly for political reasons.
His statement: “They came after us viciously… I realized how important crypto was.”
From Brian Armstrong (Coinbase) to Jesse Powell (Kraken), the post-election period has seen a flood of crypto leaders speak publicly about past debanking experiences.
Even Andreessen Horowitz and Custodia Bank CEO Caitlin Long have called out what they see as systemic targeting.
MCP View: What This Means for Markets
Whether or not the executive order lands this week, the signal to crypto markets is loud and clear: regulatory winds are shifting. This isn’t just a policy proposal, it’s a pressure release valve for an industry that’s been choked by banking risk.
We’ll be covering the full executive order and its market impact in our YouTube stream, where Simon will also walk through which tokens stand to benefit most from renewed institutional support.
Inside MCP News Private, our $3/month members will get access to exclusive briefings on how U.S. banking policy shifts may affect stablecoin liquidity, altcoin inflows, and DeFi access in Q4.
And if you’re in ParadiseFamilyVIP, this week’s macro deep dive with Simon and Nathan will include historical comparisons between regulatory pivots and major bull cycle ignitions.
When a president has to force banks to behave fairly, it’s no longer about risk, it’s about control. Crypto isn’t fighting the system anymore… it’s becoming the test of the system’s integrity
