The Breakdown The Real Battle Behind Debanking and Operation Chokepoint
Aug 7, 2025
A major executive order from Trump targets politically motivated debanking, but experts argue federal regulators are the real issue. The legacy of Operation Chokepoint comes under scrutiny as the potential for banking reform grows. Meanwhile, in the world of crypto, the SEC clarifies that most liquid staking protocols aren't securities, paving the way for more decentralized finance opportunities. Significant discussions also unfold around new stablecoin accounting guidance, showcasing the evolving landscape of financial regulations.
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Trump Targets Politically Motivated Debanking
- President Trump is preparing an executive order to penalize banks for politically motivated debanking.
- The intent is to prevent future waves like Operation Chokepoint by imposing consequences on financial institutions.
Regulatory Culture, Not Banks, Culprit
- Operation Chokepoint's root cause was regulatory culture, not banks themselves.
- Reform requires forcing regulators to issue clear, public guidance and allowing decisions to be challenged in court.
Demand Clear, Public Regulatory Guidelines
- Regulators must write clear policies and release them publicly to avoid covert debanking.
- Regulatory decisions should be challengeable by banks and impacted parties to prevent abuses.