From Operation Choke Point to BTC Reserve: Exploring the Trump Administration's Crypto Policy Shift

This change marked a departure from the stringent regulatory approach of the previous Biden administration, moving towards a permissive and supporting stance.

The Trump administration has brought a significant shift to the crypto policy in the US, marking a departure from the stringent regulatory approach of the previous Biden administration and moving towards a more permissive and supportive stance. This change in attitude is expected to have a substantial impact on the industry, setting the stage for a period of rapid growth and innovation.

During President Joe Biden’s tenure, federal agencies ramped up their supervision of the crypto industry. The Department of Justice (DOJ) established the National Cryptocurrency Enforcement Team (NCET) in 2021 to focus on combating crypto-related crimes. At the same time, the Securities and Exchange Commission (SEC), led by Chair Gary Gensler, pursued multiple enforcement actions against major exchanges, such as Coinbase and Binance, for alleged violations of securities laws.

In 2023 alone, the SEC initiated 46 crypto-related enforcement actions, showcasing a 53% increase from the previous year. Moreover, the Biden administration employed indirect measures to limit crypto’s expansion. Agencies like the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve issued advisories discouraging banks from partnerships with crypto firms, ultimately leading to the partial closure of the industry.

This strategy, comparable to the original Operation Choke Point, aimed to mitigate perceived risks linked to digital assets. However, it drew criticism from those in the crypto industry, who viewed it as an obstruction to innovation and financial inclusion.

Conversely, the Trump administration’s policies are being welcomed by many in the crypto sector. Exchanges, institutional investors, and retail traders see this deregulation as an opportunity for the industry to flourish.

With reduced regulatory pressures and an aggressive move towards a national Bitcoin reserve, the industry anticipates a much more favorable environment in the next four years.

A Deep Dive into the US' Evolving Approach to Digital Asset Oversight

This report by CryptoSlate will provide an in-depth analysis of the policy reversal that has reshaped the relationship between the US federal government and the crypto industry.

The report will examine the Biden administration's aggressive enforcement campaign, highlighting key actions by the DOJ, SEC, and banking regulators, including the creation of the National Cryptocurrency Enforcement Team and the broader strategy known as Operation Choke Point 2.0. It will then analyze how the Trump administration has dismantled much of that framework in 2025 through Executive Order 14178 and the disbanding of the NCET.

By comparing regulatory priorities across administrations, assessing specific case withdrawals, and exploring the legal and market implications of this transition, the report aims to provide a complete breakdown of the United States' evolving approach to digital asset oversight.

The Biden administration’s crypto policy was largely focused on regulation and enforcement, with the goal of protecting investors and ensuring the stability of the financial system. This policy was implemented through a number of actions, including the creation of the National Cryptocurrency Enforcement Team (NCET) at the Department of Justice (DOJ) in 2021 to combat crypto-related crimes.

The administration also urged the Federal Reserve to create a digital dollar and imposed restrictions on crypto firms, warning banks about partnerships with digital asset companies. This strategy, which some have called Operation Choke Point 2.0, was seen as an attempt to dampen the rapid growth of the crypto industry and mitigate perceived risks associated with digital assets.

The Trump administration, on the other hand, adopted a more supportive stance towards crypto, aiming to foster innovation and promote the use of Bitcoin as a national reserve currency. This policy shift was evident in Executive Order 14178, which directed federal agencies to prioritize a rational approach to digital asset regulation, setting the stage for a period of rapid growth and innovation in the crypto sector.

The administration also disbanded the NCET, reflecting a broader shift away from the Biden administration’s focus on enforcement and towards a more balanced approach that took into account the potential benefits of crypto technology.

This focus on Bitcoin as a reserve currency was a key aspect of the Trump administration’s crypto policy. The administration recognized the need for a stable and easily transferable reserve currency in today’s globalized economy, and Bitcoin’s unique properties made it an ideal candidate.

The administration’s policies have significant implications for the future of the crypto industry in the United States. With reduced regulatory pressures and an aggressive move towards a national Bitcoin reserve, the industry anticipates a much more favorable environment in the next four years.

This shift in policy could have a substantial impact on the industry, setting the stage for a period of rapid growth and innovation. It remains to be seen how this new policy will play out in practice and what the long-term implications will be for the crypto industry in the United States.