Trump boast of ending Biden’s Operation Choke Point 2.0

President Trump spoke at the Coinbase Crypto Summit today, taking credit for ending Operation Choke Point 2.0.

He also pledged to implement clear-cut regulations to help the US lead the future of crypto and Bitcoin.

He commented, “We will be working to create clear and simple market frameworks that will allow America to dominate the future of crypto and Bitcoin.”

Trump spoke on his crypto achievements at the summit

Speaking at the summit, Trump claimed he ended Biden’s administration’s war on crypto, the so-called Operation Choke Point 2.0. The name came about after industry analysts drew parallels to a 2013 federal campaign that sought to exclude high-risk businesses—such as firearms dealers and sellers of drug paraphernalia—from the banking system.

During Biden’s tenure, crypto experts complained that the country’s financial regulators and banks had it in for them. They argued that banks especially imposed lengthy onboarding processes, rejected smaller companies’ applications, or disengaged from the crypto industry entirely. Trump stated that he ended the unfair war on crypto and empowered American innovators to push boundaries and lead the world into the future.

He also appreciated that some acknowledge him as the first crypto president, calling it a “big honor.” 

Additionally, he asserted that he created the first presidential working group to discuss digital assets and named a new pro-innovation Securities and Exchange chair, Paul Atkins. He also said that he helped to establish the first Bitcoin strategic reserve and digital asset stockpile

Moving forward, he claimed he wanted to create more dollar-backed stablecoins and set up more regulations to allow the country to lead the future of crypto and Bitcoin.

After his remarks, Coinbase CEO Brian Armstrong and Circle CEO Jeremy Allaire discussed their firms’ evolution and the broader crypto space, agreeing that digital currencies are on track to serve a more significant role on a global scale.

Trump’s BTC reserve decision invited criticism from some crypto analysts

In March, Trump signed an executive order to establish a Bitcoin reserve and digital asset stockpile. White House AI and crypto tsar David Sacks compared them to a digital Fort Knox for cryptocurrency, referencing the Kentucky military facility that stores much of America’s gold.

However, some crypto enthusiasts did not take too kindly to the news, bashing Trump’s administration for playing it safe. Some even raised concerns about the process’s transparency, despite Sacks calling for a full accounting of the federal government’s existing crypto reserves, which were estimated at around 200,000 Bitcoin.

Charles Edwards of the Capriole Fund, a Bitcoin and digital assets hedge fund, even argued that with no active crypto purchases, the reserve is just a “fancy title for Bitcoin holdings that already existed with the government.” 

Around the same time, Jason Yanowitz, Co-Founder of crypto firm Blockworks, shared his view, seemingly supporting the BTC reserve but taking issue with the broader asset mix, claiming the plan was illogical and set a terrible precedent.

He also hinted that without clear regulations, the administration could disrupt crypto markets and fuel investors’ loss of confidence.

Per Trump’s executive order, the Treasury and Commerce secretary should develop budget-neutral ways to acquire BTC. Sacks even added that they could only purchase more Bitcoin if it did not contribute to a deficit or debt.

Meanwhile, the stablecoin bill, GENIUS Act, is set to go through a procedural vote on Thursday after lawmakers approved the bill in a 68-30 vote on Wednesday. Moreover, after two key House committees advanced the market structure bill, the CLARITY Act may soon be up for a full floor vote.

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