US President Donald Trump has taken steps to protect the cryptocurrency sector by signing a new order aimed against unfair banking practices.
Trump's Order Against Banking Practices
President Trump signed an order aimed at ending what he calls 'unfair' practices by federal regulators against financial institutions working with the cryptocurrency sector.
Removal of Reputational Risk in Banking Oversight
The decree removes the concept of reputational risk from the oversight criteria of the US Federal Reserve. This term refers to the potential for institutions to lose customers or experience a decline in revenue due to negative press.
Crypto Industry Reaction to the Initiative
The decision follows recent complaints from crypto companies and individuals about banks closing accounts without justification. This marked the end of a practice dubbed 'Operation Choke Point 2.0.'
Trump's signed order may significantly impact the relationship between banks and the cryptocurrency industry in the US by eliminating restrictions that hinder the development of this sector.
