‘Operation Choke Point 2.0’ Officially Over, Says Paul Grewal

• The Pivot: Coinbase Legal Chief Paul Grewal confirms the end of “Operation Choke Point 2.0,” citing Trump’s new Executive Order.
• The Law: The GENIUS Act has already pushed the stablecoin market past $300B; the industry now targets the CLARITY Act.
• The Impact: The regulatory thaw directly enabled Vanguard’s recent crypto pivot, unlocking institutional capital.

Coinbase Chief Legal Officer Paul Grewal formally declared the end of “Operation Choke Point 2.0” Tuesday, crediting the Trump administration’s aggressive deregulation strategy for reopening the U.S. banking system to digital asset firms. Grewal’s statement validates the industry’s view that the banking blockade era has been superseded by a new mandate for institutional integration.

“While digital assets were the target of Operation Choke Point 2.0, ‘any legal American industry could be next if regulators continue to use banking services as a political weapon ….. But I appreciate their work to document these abuses so that they never happen again,” Grewal noted.

Crypto Industry Thrives After End of Operation Choke Point 2.0 

According to Grewal, any legal American industry can be attacked through weaponizing the banking space. However, the crypto industry in the United States has thrived in the past two years, as observed by the adoption of crypto by the $11 trillion Vanguard.

Related: Vanguard Capitulates: $11 Trillion Manager Opens Door to Crypto ETFs

According to the report highlighting the tactics used in Operation Choke Point 2.0 from the United States House Committee on Financial Services, President Trump has advocated for its end. For instance, President Trump signed an executive order, in the early days of his 2nd term administration, dubbed Strengthening American Leadership in Digital Financial Technology. 

As such, the crypto tokens and coins made in America have grown backed by institutional investors. According to crypto data from CoinMarketCap, the crypto tokens and coins made in America had a market cap of about $397.5 billion led by XRP (XRP), USDC, (USDC), Solana (SOL), and Dogecoin (DOGE), 

Why Crypto Legalization is an Irreplaceable Puzzle

The legalization of the crypto industry in the United States has played a crucial role in onboarding institutional money to the digital asset space. For instance, the accelerated listing process for spot crypto Exchange-Traded Funds (ETFs) in the United States has helped widen the pipeline for integrating traditional finance (TradFi) to the wider crypto market. 

Already, several crypto altcoins – led by Solana, and XRP – have recorded a significant amount of net cash inflow and traded volume in the first few weeks. Additionally, major tech companies around the world have been building Web3 products to onboard the next 500 million people globally seamlessly to the cutting-edge financial tech. 

The ‘GENIUS’ Effect & The ‘CLARITY’ Goal

As such, the crypto industry has been anticipating the enactment of the CLARITY Act in a similar way to the GENIUS Act. The implementation of the GENIUS Act has helped increase the stablecoin market cap beyond $300 billion. 

Consequently, Grewal and Coinbase have been pushing for the election of pro-crypto leaders, especially in preparation for the 2026 midterm elections. Meanwhile, Cardano founder Charles Hoskinson, has urged the wider crypto industry to take advantage of the regulatory clarity to focus on developing revolutionary products that onboard billions of global users.

Related: Who Is Buying the XRP Dip? ‘Mega Whales’ Hit 7-Year Record Holdings