What is Operation Choke Point 2.0? Trump vows to end it

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The discussion surrounding Operation Choke Point 2.0 has heated up again as Trump prepares for a second term in office.

Crypto businesses that have long been overshadowed by this controversial program, as well as observers aware of its unfair targeting of the industry, are hopeful that Trump will take decisive action to dismantle it.

But what exactly is Operation Choke Point 2.0 and why many in the crypto sector want Trump to end it?

What is Operation Choke Point 2.0?

Operation Choke Point 2.0 is an alleged program initiated by the Biden administration and a group of US regulators to restrict the crypto industry’s access to the banking system. It is often perceived as a successor to original Operation Choke Point launched under the Obama administration in 2013 and terminated by Trump in 2017.

The objective of these initiatives is to investigate banks and their relationships with certain high-risk industries in a bid to combat fraud and money laundering. Both operations use regulatory pressure as a primary tool to target disfavored industries.

If the first “choke” pressured banks to cut ties with payday lenders, firearms dealers, as well as other unfavorable businesses, Operation Choke Point 2.0 allegedly uses regulatory threats to coerce banks into terminating relationships with crypto businesses.

Is Choke Point 2.0 even real?

The current administration has denied the existence of Operation Choke Point 2.0, but critics argue that enforcement actions taken by various financial regulators—including the Securities and Exchange Commission (SEC), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC)—have proven its existing operations.

These…