The WSJ claimed to have viewed a draft of the impending order directing bank regulators to investigate whether financial institutions might have violated the Equal Credit Opportunity Act, antitrust laws, or consumer financial-protection laws. Those who violated the laws could face fines or other legal action.

The report claimed that Trump could sign the order as soon as this week, citing people who were "familiar with the matter." However, it acknowledged that the President could still delay or change this plan.

The digital asset industry has long bemoaned the so-called "debanking" that began under Trump's predecessors, former U.S. President Joe Biden.

Essentially, it refers to the process of financial institutions restricting or terminating banking services for certain businesses due to regulatory concerns, compliance risks, or perceived instability—or in the case of digital assets, all of these factors.

An unofficial official policy

Under the Biden administration, key U.S. financial sector regulators appeared to notably increase their scrutiny of digital asset firms in the light of several high-profile collapses and scandals in the sector, including FTX and Terra-Luna in 2022.

This unofficial policy was accompanied by the Federal Reserve (Fed), Federal Deposit Insurance Corporation (FDIC), and Office of the Comptroller of the Currency (OCC)—who together make up the chief regulators of the U.S. banking sector—issuing a joint statement in January 2023 warning banks about the risks of dealing with digital asset-related businesses.

The Fed later appeared to confirm this new stance when it published an order denying Custodia Bank's application for membership, citing concerns about the risks of digital assets.

In February 2023, digital currency advocate and venture capitalist Nic Carter coined the term "Operation Choke Point 2.0" to describe what he believed was this coordinated attempt by federal agencies to limit digital asset banking activity.

Meanwhile, other industry advocates saw the collapse of several digital currency-friendly banks—namely Silvergate, Signature Bank, and Silicon Valley Bank—as the logical outcome of this hardline approach to the sector.

Despite this evidence, digital asset debanking—or the so-called 'Operation Choke Point 2.0'—was never acknowledged as an official policy of the Biden administration or the Banking sector regulators.