House Republicans released a 51-page report on 1 December, documenting how Biden Administration regulators used supervisory pressure, “Operation Choke Point 2.0,” to cut crypto firms from the banking system.
The report cites internal “pause letters” and policy documents while detailing the Trump Administration’s subsequent reversal of those policies.
Pause letters and supervisory pressure details “Operation Choke Point 2.0”
The House Financial Services Committee report provides evidence that at least 30 digital asset entities and individuals lost banking access between 2022 and 2024.
The documentation includes FDIC letters to approximately 24 banks. It requested that they delay crypto services and Federal Reserve guidance requiring non-objection letters before banks could engage in digital asset activities.
The FDIC’s “pause letters,” were released publicly in February 2025.
It showed regulators requesting banks halt crypto-related activities, in what was widely regarded as “Operation Choke Point 2.0. Their reviews were paused while demanding extensive documentation.
According to the report, these letters made it “impracticable for financial institutions to pursue digital asset-related activities.”
Industry impact: From Coinbase to small startups
High-profile figures affected included Coinbase, Marathon Digital Holdings, and founders from Uniswap, Ripple, and Gemini.
Anchorage Digital, an institutional crypto platform, laid off 20% of its workforce after losing banking access in 2023.
The report details how regulators used non-rulemaking tools. The rules included supervisory letters [SR 22-6, SR 23-8], interpretive guidance [IL 1179], and the SEC’s Staff Accounting Bulletin 121.
These measures, “Operation Choke Point 2.0,” created barriers without formal Congressional rulemaking processes.
Industry executives described account closures with as little as 24-72 hours notice. Banks terminated relationships without explanation, forcing companies to scramble to meet payroll and basic operating expenses.
Trump administration reversals
The Trump Administration has systematically reversed these policies since taking office in January 2025.
Key actions include rescinding SAB 121, withdrawing Federal Reserve supervisory letters requiring pre-approval for crypto activities, and eliminating “reputational risk” as a supervisory criterion across all banking agencies.
The administration signed the GENIUS Act in July 2025, establishing the first federal regulatory framework for payment stablecoins.
It also created a Presidential Working Group on Digital Asset Markets led by White House AI and Crypto Czar David Sacks.
What’s Next: Legislative agenda
Additional proposed legislation would prohibit the use of reputational risk in bank supervision and reform the CAMELS rating system.
While the report represents a partisan Republican perspective, it compiles documentary evidence from multiple agencies showing how regulatory tools were deployed against the crypto industry.
Final Thoughts
House Republicans documented at least 30 crypto entities and individuals were debanked during the Biden Administration through FDIC “pause letters” and supervisory pressure.
The Trump Administration has reversed major Biden-era crypto policies, including rescinding SAB 121 and eliminating “reputational risk” from bank supervision.
Next: Market wipeout drags XRP lower: Here’s why a bounce to $2.2 is important
