- The OCC has confirmed that banks are permitted to handle cryptocurrency custody following the announcement to dismantle “Operation Choke Point 2.0.”
- The U.S. government will not be selling any of its Bitcoin holdings, as stated by President Trump.
- Additionally, Trump revealed that the Treasury and Commerce Departments will investigate methods to acquire more Bitcoin for a strategic reserve.
During the Crypto Summit at the White House on Friday, President Trump outlined several initiatives to promote a favorable regulatory framework for cryptocurrency in the United States.
He emphasized that the Treasury and Commerce Departments would work collaboratively to dismantle “Operation Choke Point 2.0.”
Focus on Bitcoin reserves and banking regulation at the White House Crypto Summit
The first-ever White House Crypto Summit occurred on Friday, bringing together prominent figures from the crypto sector along with several heads of federal agencies.
This roundtable featured key federal officials including Crypto Czar David Sacks, Commerce Secretary Howard Lutnick, and Treasury Secretary Scott Bessent.
Regulatory figures attended as well, including Hester Peirce, head of the Crypto Task Force, and Caroline Pham, acting Chair of the Commodity Futures Trading Commission (CFTC).
President Trump highlighted significant points regarding cryptocurrency regulations, reflecting on some missteps of the previous administration.
He asserted that his administration would resolve regulatory barriers facing banks in managing crypto assets for their customers. Specifically, he addressed the contentious debanking program, “Operation Choke Point 2.0,” which purportedly originated under the Biden administration.
This operation restricts banks from offering custody services for crypto assets and financial support to digital asset firms.
The initiative to “eliminate Biden’s Operation Choke Point 2.0” will be led by the Office of the Comptroller of the Currency (OCC). Following the Summit, the OCC announced that banks are now authorized to custody various crypto assets, including stablecoins.
Moreover, Trump stated that the U.S. government would retain its Bitcoin holdings without any intention to sell, intending to transform the Bitcoin under government possession into a strategic reserve as per his executive order issued earlier that week.
“Last year, I pledged to position America as the Bitcoin superpower of the world, and we are taking landmark actions to fulfill that commitment,” Trump proclaimed at the summit.
He also indicated that he had tasked the Treasury and Commerce Departments with finding new avenues for increasing the government’s Bitcoin reserves.
In addition, Trump announced the creation of a separate stockpile for other digital assets beyond Bitcoin, which may involve altcoins such as Ether (ETH), XRP, Cardano (ADA), and Solana (SOL), previously mentioned as potential inclusions in the digital reserve.
Despite these developments, the crypto market reacted negatively, experiencing a 3% decline on Friday following the summit.