Trump torches Fed, Biden – calls debanking ‘very dangerous’ for U.S. economy

• “Operation Chokepoint 2.0” has been blamed for crypto’s financial exclusion under Biden.
• Trump refuses to divest from crypto, says U.S. must stay competitive.

Positioning himself as a pro-crypto leader and vocal critic of the previous administration, President Donald Trump recently condemned the ongoing debanking of crypto firms, describing it as a “very bad and very dangerous” trend.

He suggested the practice originated under President Biden’s watch and continues to hinder the U.S. crypto industry.

“They’re petrified of the regulators” 

In a recent appearance in the Oval Office on the 28th of June, Trump said, 

“There is a lot of debanking. Those people are very bad and very dangerous, and they shouldn’t be doing it.”

This came in response to a recent exchange with journalist Sander Lutz, Trump was asked whether he would consider signing an executive order to address the issue.

Responding to which, Trump said, 

“I can tell you, because I’ve been a victim myself, because of my politics, that big banks were very nasty to us. And I actually think it was Biden’s people that told him to be because the one group of people the banks are afraid of are the regulators. They are petrified of the regulators.”

Though Trump stopped short of confirming a new executive order, he hinted that the issue still requires action, stating the debanking problem “continues to this day.”

Crypto conflict of interest?

He also sidestepped inquiries about whether he would distance himself from his family’s crypto-related ventures to avoid conflicts of interest in advancing crypto legislation.

Instead, Trump emphasized the strategic importance of embracing digital assets, suggesting that if the U.S. turned its back on crypto, rival nations like China would seize the advantage. 

Trump added, 

“Many Democrats have said that they are not going to support crypto bills in Congress only because of you and your family’s personal crypto ventures.”

Operation Chokepoint 2.0 vs. Trump’s reversal

For those unaware, the Trump and Biden administrations take fundamentally opposing approaches to crypto banking access.

Under President Biden, regulators allegedly pressured banks to cut ties with digital asset firms, an effort critics dubbed “Operation Chokepoint 2.0.”

This push led to widespread debanking across the crypto sector, as banks distanced themselves due to perceived reputational risks.

In contrast, President Trump’s administration is actively tearing down these barriers.

It has rolled back controversial policies like SAB 121, promoted anti-discrimination rules in banking, and introduced executive actions to stop banks from unfairly excluding crypto firms from financial services.

Alongside this pro-crypto stance, Trump has intensified his criticism of the Federal Reserve, especially over its reluctance to lower interest rates.

The Powell problem and what’s ahead?

Trump also revived his long-standing criticism of Federal Reserve Chair Jerome Powell—whom he originally appointed—calling him a “stubborn mule” and urging him to resign.

This clash followed Powell’s earlier remarks in January, where he noted that banks could engage with crypto, provided they had strong risk controls.

“The threshold has been a little higher for banks engaging in crypto activities, and that’s because they’re so new.” 

These comments align with recent reports from The Wall Street Journal suggesting that a forthcoming executive order will prohibit banks from denying services to crypto firms purely based on their industry or assumed political affiliations.

If enacted, the order could mark a pivotal shift toward restoring fair financial access and reaffirming institutional support for the growth of the crypto sector.