OCC Eases Crypto Banking Rules Following Trump’s Promise to End Operation Chokepoint 2.0

In a significant shift, the U.S. Office of the Comptroller of the Currency (OCC) has eased its stance on cryptocurrency-related activities within U.S. banks. This change comes just hours after President Donald Trump vowed to end what he called the "ridiculous" Operation Chokepoint 2.0, a crackdown that has hindered crypto firms' access to traditional banking services.

In a statement released on March 7, the OCC clarified that national banks and federal savings associations are now permitted to engage in certain crypto-related activities, including crypto-asset custody, specific stablecoin operations, and participation in independent node verification networks (INVN) like distributed ledger technologies. The guidance, which was outlined in Interpretive Letter 1183, signals a shift towards a more accommodating regulatory approach for financial institutions engaging with the crypto sector.

Reducing Burdens on Banks

The OCC's new guidance, which takes effect immediately, also eliminates the need for banks to obtain "supervisory nonobjection" before engaging in crypto-related activities. Acting Comptroller of the Currency, Rodney E. Hood, emphasized that this action would "reduce the burden" on banks, making it easier for them to participate in the growing digital asset space.

“We believe that today’s action will reduce the burden on banks to engage in crypto-related activities and ensure that these bank activities are treated consistently by the OCC,” Hood said. The OCC's decision is rooted in a growing understanding of crypto and its potential, with the agency hoping to encourage responsible innovation and enhance transparency within the financial sector.

Industry Reaction: Progress, but Still Challenges Ahead

While many in the cryptocurrency industry have welcomed the OCC’s new stance, some remain cautious. Caitlin Long, CEO and founder of Custodia Bank, noted in a post on X (formerly Twitter) that while the OCC's decision is a positive step, Operation Chokepoint 2.0 will not truly be over until other key regulatory bodies, such as the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC), also reverse their "anti-crypto" guidance.

The OCC’s move comes in the wake of Trump’s remarks at the White House Crypto Summit, where he promised to end Operation Chokepoint 2.0. "Some people really suffered, it was ridiculous what they were doing," Trump said. "In the end, they came around, but they came around for the wrong reasons—only because they wanted votes."

The Impact of Operation Chokepoint 2.0

Operation Chokepoint 2.0 has been a point of contention in the crypto industry, with many viewing it as a coordinated effort by government agencies to "strong-arm" banks into severing ties with crypto businesses. The operation severely impacted the ability of crypto firms to access banking services, effectively blocking money transfers to and from exchanges. Critics argue that it weaponized regulatory power to stifle the growth of the digital asset industry.

Trump also addressed the issue directly during the summit, describing how the government "strong-armed" banks into closing accounts for crypto businesses and entrepreneurs, thereby impeding the sector’s operations. “They weaponized the government against the entire industry,” Trump remarked, adding that such actions would soon be over.

Legal Scrutiny and Whistleblower Allegations

The operation has not only attracted the ire of industry leaders but also legal scrutiny. In January 2025, Wyoming Senator Cynthia Lummis sent a letter to the FDIC, alleging that whistleblowers had informed her that the agency had destroyed documents related to Operation Chokepoint 2.0. Lummis warned that if these allegations were proven true, she would pursue criminal referrals to the U.S. Department of Justice.

“If it is uncovered that you or your staff have knowingly destroyed materials or sought to obstruct the oversight functions of the Senate, I will make swift criminal referrals to the U.S. Department of Justice,” Lummis wrote.

Looking Ahead: A Shifting Regulatory Landscape

The OCC's revised guidance and Trump's pledge to end Operation Chokepoint 2.0 reflect a broader shift in the U.S. government’s stance on cryptocurrency. While the OCC’s decision is seen as a step in the right direction, the full restoration of access to banking services for crypto firms will depend on further actions from other federal agencies, such as the Federal Reserve and FDIC.

The evolving regulatory environment suggests that the U.S. government is beginning to recognize the growing importance of the crypto sector, with officials increasingly focused on fostering innovation while ensuring appropriate oversight. However, the road to a fully supportive regulatory framework for digital assets remains long, with ongoing battles over the future of crypto banking still on the horizon.

As the industry navigates this shifting landscape, crypto firms may find new opportunities for collaboration with traditional financial institutions, but they will also need to stay vigilant against the lingering effects of previous regulatory crackdowns. The full impact of these regulatory changes will unfold in the coming months, as both the industry and government continue to adapt to the growing influence of digital assets.